Is Ester Industries overvalued or undervalued?

Jun 09 2025 03:55 PM IST
share
Share Via
As of June 4, 2025, Ester Industries is considered overvalued with a high PE ratio of 96.38 and poor financial performance, including a year-to-date return of -9.94% and negative ROCE and ROE, leading to a downgrade from attractive to fair valuation.
As of 4 June 2025, Ester Industries' valuation grade has moved from attractive to fair. The company appears to be overvalued based on its high PE ratio of 96.38, a price-to-book value of 1.88, and an EV to EBITDA ratio of 13.27. Compared to peers, Ester's valuation metrics are significantly higher; for instance, Supreme Industries has a PE ratio of 57.34, while Time Technoplast is at 24.01 for EV to EBITDA, indicating that Ester is priced at a premium relative to its industry counterparts.

In terms of performance, Ester Industries has shown a year-to-date return of -9.94%, underperforming the Sensex, which has returned 5.63% in the same period. With a negative ROCE of -2.40% and ROE of -11.65%, the financial health of the company raises concerns about its current valuation. Overall, Ester Industries is considered overvalued in the current market context.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News