Ester IndustriesNSE:ESTER +1.22%67 Return-on-Tangible-Equity is 4.03% as of Mar. 2026, which is 35% below its 10-year median of 6.19. GuruFocus rates NSE:ESTER with a GF Score™ of 67/100 and a GF Value™ of ₹116.97 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,567 Chemicals companies, Ester Industries ranks worse than 79.96% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Ester Industries's annualized net income for the quarter that ended in Mar. 2026 was ₹315 Mil. Ester Industries's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹7,824 Mil. Therefore, Ester Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 4.03%.
The historical rank and industry rank for Ester Industries's Return-on-Tangible-Equity or its related term are showing as below:
NSE:ESTER'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -16.59 Med: 6.19 Max: 29.97
Current: -3.51
During the past 13 years, Ester Industries's highest Return-on-Tangible-Equity was 29.97%. The lowest was -16.59%. And the median was 6.19%.
NSE:ESTER's Return-on-Tangible-Equity is ranked worse than 79.96% of 1567
companies
in the Chemicals industry
Industry Median: 5.7
vs NSE:ESTER: -3.51
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Ester Industries Return-on-Tangible-Equity Related Terms
Ester Industries Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Ester Industries's Return-on-Tangible-Equity 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.
NSE:ESTER vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Ester Industries's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Ester Industries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ester Industries's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 4.03% mean?
Ester Industries (NSE:ESTER) has a Return-on-Tangible-Equity of 4.03% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ester Industries and its competitors. This is 35% below median its historical median of 6.19. According to the industry distribution chart, Ester Industries ranks #1253 out of 1567 companies in the Chemicals industry, placing it in the top 80%.
Is Ester Industries' Return-on-Tangible-Equity too high?
Ester Industries' current Return-on-Tangible-Equity of 4.03% is 35% below median its 10-year median of 6.19. The Chemicals industry median Return-on-Tangible-Equity is 5.70. Ester Industries' value of 4.03% is 29.3% below this industry median. Based on the distribution chart, Ester Industries ranks #1253 out of 1567 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Ester Industries has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ester Industries' Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Ester Industries ranks #1253 out of 1567 companies for Return-on-Tangible-Equity. This places Ester Industries in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.70. Ester Industries' value of 4.03% is 29.3% below this benchmark. While the company's 10-year median is 6.19 vs. the industry median of 5.70, 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 Return-on-Tangible-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.70, based on 1,567 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ester Industries's current Return-on-Tangible-Equity of 4.03% is 29.3% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ester Industries and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ester Industries's current Return-on-Tangible-Equity is 4.03%, which is 35% below median its own 10-year median of 6.19. 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 ₹116.97, compared to a current price of ₹90.55 — trading 22.6% below its estimated fair value. The current Return-on-Tangible-Equity is 4.03%, which is 35% below median its 10-year median of 6.19 and 29.3% below the Chemicals industry median of 5.70. Ester Industries' overall GF Score™ is 67/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Ester Industries (NSE:ESTER), the current Return-on-Tangible-Equity is 4.03% 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 ₹90.55 is trading 22.6% below its estimated GF Value™ of ₹116.97.
GuruFocus considers Ester Industries to be Modestly Undervalued.
Key valuation signals for NSE:ESTER:
Return-on-Tangible-Equity: 4.03% (35% below median its 10-year median of 6.19)
GF Value™: ₹116.97 vs. price of ₹90.55 (22.6% below fair value)
Industry Position: 29.3% below the Chemicals median (#1253 of 1567)
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.
67GF Score
Get the complete analysis for NSE:ESTER
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:ESTER has been successfully added to your 
