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Ester Industries is up 10%; here’s why

Stocks
2 min Read Nov 7, 2024
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Ester Industries witnessed a 9.6% surge in its share price on Thursday, November 7, following its strong Q2FY25 performance. The company’s shares touched an intraday high of ₹173.9 on the BSE, highlighting renewed investor interest in share market investment opportunities.

Ester Industries sees strong early trade gains

By 9:40 AM, Ester Industries shares had risen 5.26% to ₹166.95, even as the BSE Sensex dropped 0.53% to 79,950.6. The company’s market capitalisation reached ₹1,579.43 crore.

Key metrics show the stock trading near its 52-week high of ₹177.6, significantly above its 52-week low of ₹80.21. Industry analysts attribute this momentum to the company’s recent financial turnaround.

Q2FY25 results boost investor confidence

Ester Industries reported a consolidated net profit of ₹3.01 crore for Q2FY25, a significant improvement from the net loss of ₹30.44 crore in the same quarter last year.

Revenue for the quarter ended September increased by 26.69%, reaching ₹331.15 crore compared to ₹261.37 crore a year ago. The company’s total income rose 23.09% to ₹333.78 crore, further strengthening its financial position.

This improved performance highlights Ester Industries’ resilience and strategic focus, making it a viable option for share market investment.

Ester Industries’ business profile

Founded in 1985 and headquartered in Haryana, Ester Industries is one of the leading manufacturers of polymer products and speciality chemicals. The company’s diverse portfolio includes polyEster films, engineering plastics, and speciality chemicals, catering to industries such as packaging, automotive, electronics, and textiles.

Ester Industries prioritises innovation and sustainability, employing advanced manufacturing techniques to deliver high-quality products. It serves both domestic and international markets and has a strong presence in the global polyEster supply chain.

Stock performance over the year

In the past year, Ester Industries shares have surged by 80.3%, outperforming the Sensex’s 24% gain. This consistent growth has drawn attention from investors exploring share market investment opportunities in high-potential stocks.

Key takeaways

  • Stock rally: Ester Industries shares jumped 9.6%, reaching ₹173.9 on strong Q2FY25 results.

  • Financial turnaround: The company reported a net profit of ₹3.01 crore, reversing last year’s loss of ₹30.44 crore.

  • Revenue growth: Q2 revenue grew 26.69% year-on-year, bolstering market confidence.

  • Market performance: Ester Industries outperformed the Sensex, gaining 80.3% over the last year.

Ester Industries’ strong performance underscores its potential as a strong contender in share market investment.