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Ester Industries
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Incorporated in February, 1985, Ester Industries Ltd is a manufacturer of PET Film and Engineering Plastics. Promoted by Sitaram Singhania, along with J P Shroff, the Company is having installed capacity 36000 TPA Polyester Chips, 18000 TPA Polyester Films and 6000 TPA Dope-dyed Coarse Denier Polyester Filament Yarn. The total cost of the project was Rs 84.4 cr, which was part-financed by a public issue in Feb.'88. Ester Industries was the first company in the country to have integrated operations to manufacture three products, polyester chips, polyester film and dope-dyed polyester filament yarn. It operate a working plant in Khatima, Uttaranchal.
The Company is having two wholly owned foreign subsidiaries i.e Ester International (USA) Ltd and Ester Europe GmbH. The Company is also planning to set up a one more subsidiary in Oman to manufacture 24000 MT of Polyster Film.
EIL is considering various options, including private placement with FIIs, to raise around Rs 14 cr to pay the overdue interest as per the revival package.
The company's expansion-cum-modernisation programme with an investment of Rs 125 crores for increasing the annual production capacities of Chips from 20000 to 36000 MT and Polyester Film from 4000 to 18000 MT commenced commercial production from 1st January, 1998.
In 2001 the Company declared as a Sick Industrial Undertaking in October, 2001 and Rehabilation package was approved by BIFR for one time settlement of Rs.5,520.40 lacs.
In 2004, the Company completed the modernization of Chips Plant and this modernization helps the Company to produce the chips at substantially lower costs.
A new 4.10 MW Base Load Power Generation Unit that runs on cheaper fuel, Furnace Oil was made operative in January 2004. The Chips Plant was commissioned in July, 2004. Metallizer Plant of 4873 TPA capacity was commissioned at Khatima factory site, in October, 2005. Film Line No. 1 Modernization Project was completed in March, 2006. Co - Extruder system in the Film Line No 2 got commissioned in June, 2006. In October 2007, Company commissioned two new Compounded Engineering Plastics Extruders totaling capacity of 3,600 MT per annum. Thereafter, Biomass (Rice Husk) based Thermic Fluid Heater of 7 million kilo calories per hour capacity at Khatima Plant was commissioned in December, 2008. The Company commissioned Continuous Polymerisation Plant of 71,000 MT capacity, Polyester Film Plant of 30,000 MT capacity and Metalliser Plant of 7,200 MT capacity in 2011.
During 2011-12, Company commissioned Recycling Extruder, Off - Line Coater and Thermic Fluid Heating system. It enhanced operating capacity in Engineering Plastics to 16500 TPA by installing state of the art Compounding Extruder of 8000 TPA capacity in 2014. It again enhanced the Solid State Polymerization (SSP) capacity by 4800 TPA by installing a 32 cubic meters SSP dryer during 2013-14.
The Company got into a Scheme of Arrangement with M/s. Sriyam Impex Private Limited and made it effective on May 7, 2014. In 2014-15, it commissioned Bio-mass (Rice Husk) fuelled Thermic Fluid Heater of 10 MKCal capacity and in addition, to the existing UPS of 7950 KVA, a rotary type UPS of 1670 KVA also got commissioned. Three new lines of thin BOPET film were commissioned in India in 2016 adding around 933 kilo tonnes of capacity. It added new BOPET Film capacity in Telangana through its Wholly Owned Subsidiary, Ester Filmtech Limited, which commenced commercial production from 20th January 2023. Besides, the new Film Plant in Hyderabad started its commercial operations during March, 2023.
Ester Industries share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Ester Industries indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Ester Industries is valued compared to its competitors.
Ester Industries PE ratio helps investors understand what is the market value of each stock compared to Ester Industries 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Ester Industries evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Ester Industries generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Ester Industries in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Ester Industries shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Ester Industries compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Ester Industries over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Ester Industries helps investors get an insight into when they can enter or exit the stock. Key components of Ester Industries Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Ester Industries shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Ester Industries ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Ester Industries provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Ester Industries highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Ester Industries .
The balance sheet presents a snapshot of Ester Industries ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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