Fundamental Analysis
ESTER INDUSTRIES LTD.
Ticker : 500136
BUY: Rs 146.75
Target: Rs 165
Ester Industries manufactures polyester films, speciality polymers & engineering plastic compounds. On the standalone quarterly front, the company recorded net sales and operating income of Rs 297.03 crore for Q4FY21, recording a rise of 17 per cent from its net sales & operating income of Rs 253.87 crore reported for Q4FY20. The operating profit improved by 12.84 per cent to reach Rs 60.36 crore in Q4FY21 from Rs 53.5 crore posted in Q4FY20. The net profit was reported at Rs 33.89 crore in Q4FY21 as compared to Rs 36.91 crore in Q4FY20, shrinking by 8.2 per cent. The company aims to achieve a turnover of Rs 140 crore in speciality business in FY22. Hence, expecting a strong market for polymers & speciality polymers, going forward, we recommend BUY.