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Last Updated on: 25 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Ester Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 25, 2024, 11:55 pm

Market Cap 1,406 Cr.
Current Price 150
High / Low178/82.0
Stock P/E
Book Value 74.5
Dividend Yield0.00 %
ROCE4.98 %
ROE18.1 %
Face Value 5.00
PEG Ratio0.00

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Ester Industries Ltd

Competitors of Ester Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of Ester Industries Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales251256297319259288303324302193295258261
Expenses181202240257222244253265279194285257272
Operating Profit705457623744505923-1100-10
OPM %28%21%19%19%14%15%17%18%8%-1%3%0%-4%
Other Income2222161411101238-1910
Interest4565569788141718
Depreciation999991010101010141617
Profit before tax5943445039424453129-12-20-24-35
Tax %25%26%27%26%17%19%25%22%4%22%10%6%13%
Net Profit4432323732353342124-9-18-22-30
EPS in Rs5.303.783.894.433.884.143.954.9814.85-1.11-2.13-2.65-3.65

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2008Mar 2009Mar 2010Mar 2011Mar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2021Mar 2022Mar 2023TTM
Sales3183723956716988849288957689921,1101,1141,006
Expenses2803013344486638428538236987609391,0221,008
Operating Profit387161223354274727123117193-2
OPM %12%19%15%33%5%5%8%8%9%23%15%8%-0%
Other Income20116553586013726
Interest1310613352635373619253656
Depreciation14131418272930323235374458
Profit before tax124841193-21-81457185169149-90
Tax %20%30%33%33%34%32%41%21%33%26%19%8%
Net Profit103328129-14-5845137137137-80
EPS in Rs4.4320.58-2.21-0.841.330.610.5516.4916.3916.42-9.54
Dividend Payout %28%8%23%19%0%0%38%0%0%21%20%3%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2008-20092009-20102010-20112011-20122012-20132013-20142014-20152015-20162021-20222022-2023
YoY Net Profit Growth (%)230.00%-15.15%360.71%-110.85%64.29%260.00%-50.00%25.00%0.00%0.00%
Change in YoY Net Profit Growth (%)0.00%-245.15%375.87%-471.57%175.14%195.71%-310.00%75.00%-25.00%0.00%

Ester Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2008-2009 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:1%
5 Years:%
3 Years:2%
TTM:15%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-3%
Stock Price CAGR
10 Years:21%
5 Years:35%
3 Years:7%
1 Year:82%
Return on Equity
10 Years:%
5 Years:%
3 Years:7%
Last Year:-18%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:34 am

MonthMar 2009Mar 2010Mar 2011Mar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital28313131313131424242424747
Reserves113146246232226232235250470580702671654
Borrowings5354224304335363376316208639816773733
Other Liabilities44691226060727280142168155153149
Total Liabilities2383016236276526987146888621,4281,7151,6431,582
Fixed Assets140136363350376390399385377390979989958
CWIP037517518122376435798385
Investments00110000101546949
Other Assets97129254258272290303280407604503502491
Total Assets2383016236276526987146888621,4281,7151,6431,582

Reserves and Borrowings Chart

Cash Flow

MonthMar 2009Mar 2010Mar 2011Mar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +6646834723526881146625844
Cash from Investing Activity +-5-54-222-36-27-57-36-20-147-392-19942
Cash from Financing Activity +-6010140-94-2-18-753384114-14
Net Cash Flow1213-0-714-14254-2872

Free Cash Flow

MonthMar 2008Mar 2009Mar 2010Mar 2011Mar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2021Mar 2022Mar 2023
Free Cash Flow38.0018.007.00-1.00-269.00-293.00-289.00-304.00-245.0023.00-468.00-723.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2009Mar 2010Mar 2011Mar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days384766444549485356645051
Inventory Days5059867769697496981108870
Days Payable274667141111111727341731
Cash Conversion Cycle60608510710310611113212613912190
Working Capital Days59556985777878869111910590
ROCE %29%23%56%3%3%8%7%7%14%4%-5%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters64.04%64.04%64.04%64.04%64.04%64.04%64.04%64.04%64.04%64.04%62.45%62.45%
FIIs0.40%0.28%0.34%0.39%0.26%0.25%0.32%0.16%0.04%0.03%0.04%0.03%
DIIs0.03%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public35.53%35.66%35.60%35.55%35.68%35.69%35.62%35.78%35.91%35.92%37.50%37.49%
No. of Shareholders36,41434,14739,47738,56536,67439,66140,80240,44541,56441,44741,42837,803

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 16
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)-14.4916.4216.3916.490.57
Diluted EPS (Rs.)-14.4916.4216.3916.490.57
Cash EPS (Rs.)-5.6421.6821.0320.714.43
Book Value[Excl.RevalReserv]/Share (Rs.)76.3789.1574.5560.8134.45
Book Value[Incl.RevalReserv]/Share (Rs.)76.3789.1574.5561.4035.04
Revenue From Operations / Share (Rs.)113.19133.60168.56118.9292.43
PBDIT / Share (Rs.)0.3612.4929.9528.689.02
PBIT / Share (Rs.)-6.887.2325.3124.465.14
PBT / Share (Rs.)-14.372.8722.3322.230.81
Net Profit / Share (Rs.)-12.8816.4216.3916.490.54
NP After MI And SOA / Share (Rs.)-12.8816.4216.3916.490.54
PBDIT Margin (%)0.319.3517.7624.119.75
PBIT Margin (%)-6.075.4015.0120.565.55
PBT Margin (%)-12.692.1413.2418.690.88
Net Profit Margin (%)-11.3812.289.7213.860.59
NP After MI And SOA Margin (%)-11.3812.289.7213.860.59
Return on Networth / Equity (%)-16.8618.4121.9827.111.58
Return on Capital Employeed (%)-5.324.4418.2430.1510.11
Return On Assets (%)-7.367.989.5715.950.66
Long Term Debt / Equity (X)0.610.720.760.190.33
Total Debt / Equity (X)1.081.101.030.340.97
Asset Turnover Ratio (%)0.630.701.430.001.10
Current Ratio (X)1.271.691.951.911.03
Quick Ratio (X)0.921.211.201.170.54
Inventory Turnover Ratio (X)4.803.825.390.003.90
Dividend Payout Ratio (NP) (%)-3.4411.5720.1224.260.00
Dividend Payout Ratio (CP) (%)-7.868.7615.6919.310.00
Earning Retention Ratio (%)103.4488.4379.8875.740.00
Cash Earning Retention Ratio (%)107.8691.2484.3180.690.00
Interest Coverage Ratio (X)0.042.8710.0412.882.09
Interest Coverage Ratio (Post Tax) (X)-0.721.326.508.401.13
Enterprise Value (Cr.)1457.071488.411756.061119.01706.40
EV / Net Operating Revenue (X)1.371.341.251.130.91
EV / EBITDA (X)430.0214.297.034.689.39
MarketCap / Net Operating Revenue (X)0.750.650.830.980.56
Retention Ratios (%)103.4488.4279.8775.730.00
Price / BV (X)1.120.971.901.921.52
Price / Net Operating Revenue (X)0.750.650.830.980.56
EarningsYield-0.150.180.110.140.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Ester Industries Ltd as of November 25, 2024 is: 206.31

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 25, 2024, Ester Industries Ltd is Undervalued by 37.54% compared to the current share price 150.00

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of Ester Industries Ltd as of November 25, 2024 is: 127.51

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 25, 2024, Ester Industries Ltd is Overvalued by 14.99% compared to the current share price 150.00

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -38.20%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (532.62 cr) and profit (54.15 cr) over the years.
  1. The stock has a low average ROCE of 12.42%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 82.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 103.33, which may not be favorable.
  4. The company has higher borrowings (399.54) compared to reserves (365.92), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Ester Industries Ltd:
    1. Net Profit Margin: -11.38%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: -5.32% (Industry Average ROCE: 0.59%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: -16.86% (Industry Average ROE: 0.49%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): -0.72
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.92
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 0 (Industry average Stock P/E: 0)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.08
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Ester Industries Ltd. is a Public Limited Listed company incorporated on 04/02/1985 and has its registered office in the State of Uttarakhand/Uttaranchal, India. Company’s Corporate Identification Number(CIN) is L24111UR1985PLC015063 and registration number is 015063. Currently Company is involved in the business activities of Manufacture of moulded industrial accessories of plastics [including electrical insulating fittings of plastics]. Company’s Total Operating Revenue is Rs. 1405.66 Cr. and Equity Capital is Rs. 41.70 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Packaging & ContainersSohan Nagar, Udham Singh Nagar Uttarakhand/Uttaranchal 262308investor@ester.in
http://www.esterindustries.com
Management
NamePosition Held
Mr. Arvind SinghaniaChairman & CEO
Mr. Pradeeep Kumar RustagiExecutive Director
Mr. Ayush Vardhan SinghaniaWhole Time Director
Mrs. Archana SinghaniaNon Executive Director
Mr. Sandeep DinodiaIndependent Director
Mrs. Padamaja Shailen RuparelIndependent Director
Mr. Atul AgarwalIndependent Director
Mr. Alok DhirIndependent Director

FAQ

What is the latest intrinsic value of Ester Industries Ltd?

The latest intrinsic value of Ester Industries Ltd as on 25 November 2024 is ₹206.31, which is 37.54% higher than the current market price of ₹150.00.

What is the Market Cap of Ester Industries Ltd?

The Market Cap of Ester Industries Ltd is 1,406 Cr..

What is the current Stock Price of Ester Industries Ltd as on 25 November 2024?

The current stock price of Ester Industries Ltd as on 25 November 2024 is 150.

What is the High / Low of Ester Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Ester Industries Ltd stocks is 178/82.0.

What is the Stock P/E of Ester Industries Ltd?

The Stock P/E of Ester Industries Ltd is .

What is the Book Value of Ester Industries Ltd?

The Book Value of Ester Industries Ltd is 74.5.

What is the Dividend Yield of Ester Industries Ltd?

The Dividend Yield of Ester Industries Ltd is 0.00 %.

What is the ROCE of Ester Industries Ltd?

The ROCE of Ester Industries Ltd is 4.98 %.

What is the ROE of Ester Industries Ltd?

The ROE of Ester Industries Ltd is 18.1 %.

What is the Face Value of Ester Industries Ltd?

The Face Value of Ester Industries Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Ester Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE