This could be an interesting pick. 9m eps at around 3.5, and promoters have availed pref offer as mentioned below in the bse announcement.

Ester Industries - Outcome of Board Meeting | 24/12/09 16:51     
     Ester Industries Ltd has informed BSE that the Board of Directors of the Company at its meeting held on December 24, 2009, has allotted 5,217,392 Nos. Equity Shares of face value of Rs. 5/- each, at a premium of Rs. 18/- per share, upon conversion of 5,217,392 Zero Coupon Unsecured Fully and Compulsorily Convertible Debentures to M/s. Wilemina Finance Corporation and Naomi Consolidated Inc, in equal proportion.

Further, Board of Directors in the same meeting has also allotted 2,173,914 Nos. Equity Shares of face value of Rs. 5/- each, at a premium of Rs. 18/- per share upon conversion of 2,173,914 Zero Coupon Convertible Share Warrants, to Super Leasing Ltd.

The above allotment has been made pursuant to the special resolution passed by the members in the Extra Ordinary General Meeting of the Company held on October 21, 2009.

Originally posted by PKB2000 ESTIND SELL 800 20.50 132.24 NA NA Rolling STT Paid  icicidirect 12-Sep-2005 BSE What I want to say that stock price did not move a single paisa than that was in 12 Sep 2005

Dada,
This company has written off accumulated losses against equity capital resulting in the face value getting reduced from Rs 10 to Rs 5 Paid up.
Only reason I know is that they sent stickers to be affixed on the paper certificates for the shares I hold in physical form. ( I will have to look for the certificates now so that I can convert it to demat )


Basically, The Company has come back from the dead.  Wonder if I should sell it or wait a bit longer.

Anyone has any news on it ?

Originally posted by rushabh FY 10  results will be out on 18th May. Lets wait for them and then judge the road ahead. No doubt the investment is be profitable if u go long. Have started taking small positions. Just need somebody to throw a bit of light on it.

I have a report by Anand Rathi dated 28 July 2009 where in their Juganoo - Multibagger idea, Ester had been recommended at 21 with price targets of 30 in six months and 40 in 1 year. There they have discussed details of the company. You can search valuenotes for Ester and find the report.

I think promoters also took pref offer at around 21 or so sometime back.

This is owned by the Singhanias of LML group and after division this one came to Sitaram Singhania/Arvind Singhania.

The main business activities are production and marketing of polyester films and engineering plastics. They have integrated manufacturing facilities. Ester produces polyester resins which are used for manufacturing polyester films and engineering plastics. Polyster films find use in packaging and engineering plastics find use in  optic fibe, injection moldings for electronics & telecom, auto components, home electrical components like Energy Meters, CFLs, Miniature Circuit Boards. Their engineering polymer clients are listed here: http://www.esterindustries.com/approvals.htm
Polymer chips is an intermediate product which is consumed and any excess capacity is sold outside.

Growth drivers
Increase capacity PET thin film from 30000 TPA to 57000 TPA by Dec 2010(Hitesh the 2009 AR mentions calendar year and not fiscal year so this is yet to come)
Engineering Plastics are on growth path - growth in future plastic use by auto companies can be a major driver. Plan on to raise capacity from 3,600 MTs to 11,000MTs (this was being evaluated as per 2009 AR).

Negatives
US, Brazil, EU have trade barries. They closed the US subsidiary couple of years back. Turkey also has barriers.
Increasing raw material(PTA,MEG) prices - the suppliers are oil cos. like Reliance. India Glycols supplies MEG.

P/E 4.77
P/BV 0.75

RONW
FY09 28.0
FY08 10.0
FY07 0.0
FY06 -14.1
FY05 7.9

ROCE

FY09 29.4
FY08 12.6
FY07 0.0
FY06 -8.5
FY05 12.9

Net Sales
FY10 395.37
FY09 372.93
FY08 318.94
FY07 282.73
FY06 250.83
FY05 262.69
FY04 272.84

Adjusted Net Profits
FY10 27.87
FY09 33.87
FY08 10.47
FY07 -13.53
FY06 -14.69
FY05 9.86
FY04 41.47

D/E
FY09 - .6

There net profits have gone down by 16.63% from 2009 - http://www.indiainfoline.com/Markets/News/Ester-Industries-net-profit-declines-16.63-percent-in-the-year-ended-March-2010/3079163164

They have declared a dividend of 20% (Rs 1 on Rs 5 share) - http://www.indiainfoline.com/Markets/News/Ester-Industries-recommends-dividend/3080485254.

Edited by srisaurabh2000 - 20/May/2010 at 2:00pm