Ester Industries Limited Stock Research

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Ester Industries Limited Detail

Ester Industries Limited is in portfolio of Ashish Kacholia. He is one of the top investors in India. The company belongs to Packaging sector.

As per the Company website it manufactures Polyester Films, Specialty Polymers and Engineering Plastic compounds. It has global presence. It supplies to large customer base in 75 countries across Europe, Americas, Africa, the Indian sub-continent, Far East, Asia Pacific and the Middle East.

The manufacturing plant of Company is located in Khatima Uttarakhand and head quarter is in Gurgaon.

The product line of Company can be divided into three parts

  • Polyester Films
    • Used in Flexible Packaging
  • Engineering Plastics
    • Used in industries like Automotive, Electrical & Electronics, Appliances and Telecom
  • Specialty Polymers
    • Used in niche areas like rigid packaging, textiles

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

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Ester Industries Limited Stock Performance

The above long term price chart looks distorted to say the least. It has steep rises and falls not once but multiple times. There is no consistency or gradual movement in prices. Most of the time if stock rises fast it has fallen fast without any consolidation what so ever.

This proves it has failed to sustain at top. So investors who can catch the low and high to some extend can only make money. This is not a buy and hold type of stock at least after looking history of it. It has touched 100 two times and retreated. On the low side 20 seems to be strong support as of now.

Ester Industries Limited My Opinion

Ester Industries Limited is a Packaging Company. It is Business to Business Company. The products from this Company are used in different Industries. The three different product lines cater different industries so there is no overlap between them. They all have specific applications.

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Packaging sector depends on Economic development as a whole. For example demands for packing FMCG products will only gain momentum if there is more sales of products. So you need to keep an eye on industries it caters and how well they are poised for growth.

Most of the dependent sectors have this thing in common for example Auto Ancillary company will perform only if Auto sector is doing good. Also it needs to retain the Customers as well for growth.

The products from the Company does not have any bargaining power. These are generic products other then the Special packaging area. But special packaging have limited application.

I have not invested in this sector as of now. I will not track this Company as there are better alternatives in this sector. You should analyze other Companies from the sector if interested. I have reviewed many Companies from the sector on this website.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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