Is Ester Industries overvalued or undervalued?

As of 18 September 2025, Ester Industries has moved from an attractive to a fair valuation grade. The company is currently considered overvalued given its high PE ratio of 50.80, a price-to-book value of 1.64, and an EV to EBITDA ratio of 11.40. In comparison to its peers, Supreme Industries and Astral are significantly more expensive, with PE ratios of 63.78 and 81.01, respectively, while Time Technoplast and EPL Ltd are fairly valued with PE ratios of 26.79 and 17.91.
Ester Industries shows concerning financial metrics, including a negative ROCE of -2.40% and an ROE of -11.65%, indicating inefficiencies in generating returns. The company's stock has underperformed compared to the Sensex, particularly over the past year, where it has declined by 31.50% against a mere 0.08% rise in the index. Overall, the combination of high valuation ratios and poor financial performance suggests that Ester Industries is overvalued in the current market.