Is Ester Industries overvalued or undervalued?

As of 17 September 2025, Ester Industries has moved from a fair to an attractive valuation grade. The company is currently considered undervalued. Key ratios include a PE ratio of 50.04, an EV to EBITDA of 11.29, and a PEG ratio of 0.42, which indicates strong growth potential relative to its price. In comparison to its peers, Ester Industries has a significantly lower PE ratio than Supreme Industries at 64.42 and Astral at 80.9, both of which are classified as very expensive. Despite its current challenges reflected in a negative ROCE of -2.40% and ROE of -11.65%, the company's valuation appears compelling against its peers, suggesting that it may be a worthwhile investment opportunity. Over the past year, Ester Industries has underperformed the Sensex, with a return of -29.42% compared to -0.46% for the index, but its attractive valuation may signal a potential turnaround.