Is Ester Industries overvalued or undervalued?

Jun 13 2025 08:03 AM IST
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As of June 12, 2025, Ester Industries is considered overvalued with a high PE ratio of 96.98 and concerning financial performance, despite a recent return of 20.38%, suggesting its current price of 136.15 is not justified.
As of 12 June 2025, Ester Industries has moved from an attractive to a fair valuation grade. The company appears to be overvalued given its high PE ratio of 96.98, a Price to Book Value of 1.90, and an EV to EBITDA of 13.33. In comparison to its peers, such as Supreme Industries with a PE of 56.36 and Finolex Industries with a PE of 28.33, Ester's valuation seems excessive.

The company's financial performance is concerning, with a negative ROCE of -2.40% and an ROE of -11.65%, indicating inefficiencies in generating returns for shareholders. While Ester Industries has outperformed the Sensex over the past year with a return of 20.38% compared to the Sensex's 6.64%, the current valuation metrics suggest that the stock may not be justified at its current price of 136.15. Overall, Ester Industries is considered overvalued in the current market context.
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