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5001

Ester Industries BSE:500136 Stock Report

Last Price

₹168.75

Market Cap

₹14.1b

7D

8.6%

1Y

13.2%

Updated

05 Oct, 2022

Data

Company Financials
500136 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance2/6
Financial Health3/6
Dividends3/6

500136 Stock Overview

Ester Industries Limited manufactures and sells polyester films and engineering plastics in India and internationally.

Ester Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ester Industries
Historical stock prices
Current Share Price₹168.75
52 Week High₹187.80
52 Week Low₹112.50
Beta1.15
1 Month Change0.81%
3 Month Change33.93%
1 Year Change13.18%
3 Year Change458.78%
5 Year Change361.70%
Change since IPO11,953.57%

Recent News & Updates

Shareholder Returns

500136IN ChemicalsIN Market
7D8.6%0.1%1.4%
1Y13.2%-0.6%-1.7%

Return vs Industry: 500136 exceeded the Indian Chemicals industry which returned -0.6% over the past year.

Return vs Market: 500136 exceeded the Indian Market which returned -1.7% over the past year.

Price Volatility

Is 500136's price volatile compared to industry and market?
500136 volatility
500136 Average Weekly Movement6.3%
Chemicals Industry Average Movement5.4%
Market Average Movement5.9%
10% most volatile stocks in IN Market9.2%
10% least volatile stocks in IN Market3.8%

Stable Share Price: 500136 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 500136's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1985663Arvind Singhaniahttps://www.esterindustries.com

Ester Industries Limited manufactures and sells polyester films and engineering plastics in India and internationally. The company offers polyester films comprising special chemical coated, metalized high and ultra-high barrier, transparent high barrier, isotropic, heat seal, retort, shrink sleeve, matte, UV stabilized, white opaque, gold, embossable, high clear, high friction, insulation, twist, antistatic, one side matte one side gloss, anti-fog, anti-fog sealable peelable, antimony-free, bio-degradable, chemical resistance, digital printing, direct UV offset printable polyester, EVA coated, flame retardant, low friction silky matte, low emisivity, milky white, oxo-biodegradable, PVDC coated, post-consumer recycled, pre-primed, release/transfer, retort, sealable peelable, silky matte, straight tear polyethylene terephthalate (PET), thermoformable, velvet touch, and window metalized films, as well as printing, converting, and metallizing films. It also provides engineering plastics products, such as poly amides-based compounds; thermoplastics polyamide; thermoplastic polyester polybutylene terephthalate resins-based compounds; polycarbonate based compounds; thermoplastic polyester PET resins and PET based compounds; acrylonitrile butadiene styrene based compounds; polyoxymethelene based compounds; and blends/alloys.

Ester Industries Fundamentals Summary

How do Ester Industries's earnings and revenue compare to its market cap?
500136 fundamental statistics
Market Cap₹14.07b
Earnings (TTM)₹1.50b
Revenue (TTM)₹14.70b

9.4x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
500136 income statement (TTM)
Revenue₹14.70b
Cost of Revenue₹9.10b
Gross Profit₹5.60b
Other Expenses₹4.10b
Earnings₹1.50b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)17.96
Gross Margin38.08%
Net Profit Margin10.19%
Debt/Equity Ratio102.7%

How did 500136 perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

18%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 500136 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500136?

Other financial metrics that can be useful for relative valuation.

500136 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA7.6x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 500136's PE Ratio compare to its peers?

500136 PE Ratio vs Peers
The above table shows the PE ratio for 500136 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.3x
506222 INEOS Styrolution India
4.7xn/a₹15.2b
524019 Kingfa Science & Technology (India)
61.3xn/a₹13.1b
507753 TGV SRAAC
6.6xn/a₹17.9b
4.8xn/a₹13.3b
500136 Ester Industries
9.4xn/a₹14.1b

Price-To-Earnings vs Peers: 500136 is good value based on its Price-To-Earnings Ratio (9.4x) compared to the peer average (19.3x).


Price to Earnings Ratio vs Industry

How does 500136's PE Ratio compare vs other companies in the IN Chemicals Industry?

Price-To-Earnings vs Industry: 500136 is good value based on its Price-To-Earnings Ratio (9.4x) compared to the Indian Chemicals industry average (19.9x)


Price to Earnings Ratio vs Fair Ratio

What is 500136's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

500136 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 500136's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 500136 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 500136 (₹168.75) is trading above our estimate of fair value (₹48.47)

Significantly Below Fair Value: 500136 is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Ester Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.8%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ester Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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  • Take a look at our analysis of 500136’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • Ester Industries competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Ester Industries performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


48.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 500136 has high quality earnings.

Growing Profit Margin: 500136's current net profit margins (10.2%) are lower than last year (12.9%).


Past Earnings Growth Analysis

Earnings Trend: 500136 has become profitable over the past 5 years, growing earnings by 48.4% per year.

Accelerating Growth: 500136's earnings growth over the past year (3.3%) is below its 5-year average (48.4% per year).

Earnings vs Industry: 500136 earnings growth over the past year (3.3%) underperformed the Chemicals industry 18.5%.


Return on Equity

High ROE: Whilst 500136's Return on Equity (24.1%) is high, this metric is skewed due to their high level of debt.


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Financial Health

How is Ester Industries's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 500136's short term assets (₹5.3B) exceed its short term liabilities (₹2.7B).

Long Term Liabilities: 500136's short term assets (₹5.3B) do not cover its long term liabilities (₹5.4B).


Debt to Equity History and Analysis

Debt Level: 500136's net debt to equity ratio (92.9%) is considered high.

Reducing Debt: 500136's debt to equity ratio has reduced from 111.5% to 102.7% over the past 5 years.

Debt Coverage: 500136's debt is not well covered by operating cash flow (9.7%).

Interest Coverage: 500136's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet


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Dividend

What is Ester Industries's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.96%

Current Dividend Yield

Dividend Yield vs Market

Ester Industries Dividend Yield vs Market
How does Ester Industries dividend yield compare to the market?
SegmentDividend Yield
Company (Ester Industries)2.0%
Market Bottom 25% (IN)0.4%
Market Top 25% (IN)1.6%
Industry Average (Chemicals)0.7%
Analyst forecast in 3 Years (Ester Industries)n/a

Notable Dividend: 500136's dividend (1.96%) is higher than the bottom 25% of dividend payers in the Indian market (0.36%).

High Dividend: 500136's dividend (1.96%) is in the top 25% of dividend payers in the Indian market (1.59%)


Stability and Growth of Payments

Stable Dividend: 500136 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 500136's dividend payments have increased, but the company has only paid a dividend for 8 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (18.4%), 500136's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 500136 is paying a dividend but the company has no free cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Arvind Singhania (58 yo)

28.25yrs

Tenure

₹151,768,000

Compensation

Mr. Arvind Kumar Singhania, B. Com has been the Chairman and Chief Executive Officer of Ester Industries Limited since February 11, 2015. Mr. Singhania has many years of experience in the fields of product...


CEO Compensation Analysis

Arvind Singhania's Compensation vs Ester Industries Earnings
How has Arvind Singhania's remuneration changed compared to Ester Industries's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

₹1b

Mar 31 2022₹152m₹14m

₹1b

Dec 31 2021n/an/a

₹1b

Sep 30 2021n/an/a

₹1b

Jun 30 2021n/an/a

₹1b

Mar 31 2021₹152m₹14m

₹1b

Dec 31 2020n/an/a

₹1b

Sep 30 2020n/an/a

₹1b

Jun 30 2020n/an/a

₹1b

Mar 31 2020₹140m₹13m

₹995m

Dec 31 2019n/an/a

₹706m

Sep 30 2019n/an/a

₹596m

Jun 30 2019n/an/a

₹476m

Mar 31 2019₹48m₹8m

₹311m

Dec 31 2018n/an/a

₹287m

Sep 30 2018n/an/a

₹208m

Jun 30 2018n/an/a

₹128m

Mar 31 2018₹15m₹8m

₹53m

Dec 31 2017n/an/a

-₹12m

Sep 30 2017n/an/a

-₹52m

Jun 30 2017n/an/a

-₹78m

Mar 31 2017₹13m₹8m

-₹107m

Mar 31 2016₹15m₹8m

₹46m

Compensation vs Market: Arvind's total compensation ($USD1.87M) is above average for companies of similar size in the Indian market ($USD241.51K).

Compensation vs Earnings: Arvind's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 500136's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: 500136's board of directors are seasoned and experienced ( 11.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

What is the ownership structure of 500136?
Owner TypeNumber of SharesOwnership Percentage
Institutions25,4740.03%
Individual Insiders303,5910.4%
State or Government1,041,2581.2%
General Public20,831,56325.0%
Private Companies61,191,87373.4%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 10 shareholders own 75.02% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
58.1%
Wilemina Finance Corporation
48,455,012₹8.2b0%no data
9.7%
Vettel International Ltd
8,086,861₹1.4b0%no data
4.99%
Movi Limited
4,160,000₹702.0m0%no data
1.25%
Investor Education and Protection Fund (IEPF)
1,041,258₹175.7m0%no data
0.59%
Fenton Investment Pvt. Ltd.
490,000₹82.7m0%no data
0.21%
Ayush Singhania
178,033₹30.0m0%no data
0.15%
Jai Singhania
124,858₹21.1m0%no data
0.031%
American Century Investment Management Inc
25,474₹4.3m0%no data
0.00048%
Pradeep Rustagi
400₹67.5k0%no data
0.00036%
Arvind Singhania
300₹50.6k0%no data

Company Information

Ester Industries Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Ester Industries Limited
  • Ticker: 500136
  • Exchange: BSE
  • Founded: 1985
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Implied Market Cap: ₹14.073b
  • Shares outstanding: 83.39m
  • Website: https://www.esterindustries.com

Number of Employees


Location

  • Ester Industries Limited
  • Plot No. 11
  • Block-A
  • Gurugram
  • Haryana
  • 122001
  • India


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500136BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2001
ESTERNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2001

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/04 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.