Ester IndustriesNSE:ESTER -1.97%66 Interest Coverage is 1.52 as of Mar. 2026, which is 36% below its 10-year median of 2.38. GuruFocus rates NSE:ESTER with a GF Score™ of 66/100 and a GF Value™ of ₹116.53 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,234 Chemicals companies, Ester Industries ranks worse than 97.81% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Ester Industries's
Operating Income
for the
three
months ended in Mar. 2026 was ₹246 Mil. Ester Industries's Interest Expense for the
three
months ended in Mar. 2026 was ₹-162 Mil.
Ester Industries's interest coverage for the quarter that ended in Mar. 2026 was 1.52.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Ester Industries's Interest Coverage or its related term are showing as below:
NSE:ESTER'
s Interest Coverage Range Over the Past 10 Years
Min: 0.38 Med: 2.38 Max: 10.86
Current: 0.38
NSE:ESTER's Interest Coverage is ranked worse than 97.81% of 1234
companies
in the Chemicals industry
Industry Median: 10.18
vs NSE:ESTER: 0.38
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Ester Industries Interest Coverage Related Terms
Ester Industries Interest Coverage Historical Data
* Premium members only.
The historical data trend for Ester Industries's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
NSE:ESTER vs LIN, SHW, ECL: Interest Coverage Comparison
For the Specialty Chemicals subindustry, Ester Industries's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ester Industries Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Ester Industries's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Ester Industries's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ester Industries (NSE:ESTER) has a Interest Coverage of 1.52 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ester Industries and its competitors. This is 36% below median its historical median of 2.38. Over the past decade, Ester Industries' Interest Coverage has ranged from 0.38 to 10.86. According to the industry distribution chart, Ester Industries ranks #1207 out of 1234 companies in the Chemicals industry, placing it in the top 97.8%.
Is Ester Industries' Interest Coverage too high?
Ester Industries' current Interest Coverage of 1.52 is 36% below median its 10-year median of 2.38. Over the past 10 years, this metric has ranged from a low of 0.38 to a high of 10.86. The Chemicals industry median Interest Coverage is 10.18. Ester Industries' value of 1.52 is 85.1% below this industry median. Based on the distribution chart, Ester Industries ranks #1207 out of 1234 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Ester Industries has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ester Industries' Interest Coverage compare to LIN and SHW?
According to the Chemicals industry distribution chart, Ester Industries ranks #1207 out of 1234 companies for Interest Coverage. This places Ester Industries in the lower half of its industry. The industry median Interest Coverage is 10.18. Ester Industries' value of 1.52 is 85.1% below this benchmark. Historically, Ester Industries' own Interest Coverage has ranged from 0.38 to 10.86 over the past decade. While the company's 10-year median is 2.38 vs. the industry median of 10.18, Ester Industries has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Chemicals company?
The median Interest Coverage among Chemicals companies is 10.18, based on 1,234 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ester Industries's current Interest Coverage of 1.52 is 85.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ester Industries and its competitors. For the Chemicals industry, the median Interest Coverage is 10.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ester Industries's current Interest Coverage is 1.52, which is 36% below median its own 10-year median of 2.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ester Industries stock overvalued right now?
Based on GuruFocus' analysis, Ester Industries (NSE:ESTER) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹116.53, compared to a current price of ₹89.84 — trading 22.9% below its estimated fair value. The current Interest Coverage is 1.52, which is 36% below median its 10-year median of 2.38 and 85.1% below the Chemicals industry median of 10.18. Ester Industries' overall GF Score™ is 66/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Ester Industries (NSE:ESTER), the current Interest Coverage is 1.52 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ester Industries (NSE:ESTER) Overvalued in 2026?
Based on GuruFocus' analysis, Ester Industries stock appears to be undervalued.
The current stock price of ₹89.84 is trading 22.9% below its estimated GF Value™ of ₹116.53.
GuruFocus considers Ester Industries to be Modestly Undervalued.
Key valuation signals for NSE:ESTER:
Interest Coverage: 1.52 (36% below median its 10-year median of 2.38)
GF Value™: ₹116.53 vs. price of ₹89.84 (22.9% below fair value)
Industry Position: 85.1% below the Chemicals median (#1207 of 1234)
No single metric tells the full story. See the NSE:ESTER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ester Industries Ltd is engaged in the manufacturing of polyester films, and specialty polymers. The company operates through segments namely Polyester chips and film and Speciality Polymers. The company generates maximum revenue from the Polyester chips and film segment. The Polyester chips and film segment is used in flexible packaging and other industrial applications. It serves food packaging; beverage packaging, home and personal care, industrial packaging, construction, automotive, electrical and electronics, carpet, and other industries. Geographically, the company derives a majority of its revenue from India.
66GF Score
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