1. At a Glance
With a P/E over 100 and a quarterly PAT of just ₹1.78 Cr, Essen Speciality Films is selling more dreams than plastic sheets. Despite a 22% revenue growth TTM, operating margins have melted faster than cheap vinyl in summer heat.
2. Introduction with Hook
Imagine a company that makes plastic décor and gets valued like it manufactures microchips. That’s Essen for you — EVA and LDPE films for home furnishing, but priced like it’s running ChatGPT on polymers.
Stock up 212% in a year, but Q1 net profit? ₹1.78 Cr. That’s 3 Safaris worth of luggage revenue.
3. Business Model (WTF Do They Even Do?)
- Manufactures plastic-based home décor products (EVA, LDPE)
- Clients = Global furnishing giants
- Products = Customised plastic films and sheets
So basically…
“They sell plastic. Fancy plastic. But still plastic.”
4. Financials Overview
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue (Cr) | ₹173 | ₹143 | ₹119 |
| EBITDA (Cr) | ₹21 | ₹24 | ₹19 |
| Net Profit (Cr) | ₹12 | ₹14 | ₹13 |
| OPM (%) | 12% | 17% | 16% |
| ROE (%) | 7.8% | 8% | 11% |
“A business that runs lean. Or maybe just leanly runs.”
5. Valuation
P/E: 101x
Book Value: ₹61.7
CMP/BV: 6.69
ROE: 7.8%
Edu Fair Value Estimate:
- Method 1: P/E 25x EPS (₹4.11) = ₹102
- Method 2: CMP/BV ~3x (Industry Avg) = ₹185
Edu Fair Value Range™: ₹100 – ₹185
“If you think paying 100x for plastic is fine, you probably order Maggi at Starbucks too.”
6. What’s Cooking – News, Triggers, Drama
- NSE fine paid for late filings – because nothing says governance like apologetic footnotes
- Promoter holding dropped by 2% in Q1 — either some profit booking or they read the P/E
- Margins dipped to 8.55% in Q1 FY26 – not the plastic shine they promised
“More compliance letters than product SKUs this quarter.”
7. Balance Sheet
| Metric | Mar 2025 |
|---|---|
| Equity Capital | ₹25 Cr |
| Reserves | ₹128 Cr |
| Borrowings | ₹17 Cr |
| Total Liabilities | ₹192 Cr |
| Fixed Assets | ₹44 Cr |
| Other Assets | ₹145 Cr |
“Balance sheet’s not bloated. But it’s also not winning any style awards.”
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY25 | -₹12Cr | -₹6Cr | ₹14Cr | -₹4Cr |
| FY24 | -₹3Cr | -₹28Cr | ₹35Cr | ₹4Cr |
| FY23 | ₹25Cr | -₹3Cr | -₹22Cr | ₹0Cr |
“Cash flow looks like IKEA instructions — confusing, incomplete, and always missing a key part.”
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 11.4% |
| ROE | 7.8% |
| PAT Margin | 6.9% |
| D/E Ratio | 0.14 |
| P/E | 101x |
“You’d expect ROE of 20% at this valuation. You get 7. Welcome to fantasy land.”
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | Net Profit |
|---|---|---|---|
| FY25 | ₹173Cr | ₹21Cr | ₹12Cr |
| FY24 | ₹143Cr | ₹24Cr | ₹14Cr |
| FY23 | ₹119Cr | ₹19Cr | ₹13Cr |
“Net profit down, margin squeezed, yet stock flying? Must be a new form of inflation-resistant optimism.”
11. Peer Comparison
| Company | P/E | Rev (Cr) | PAT (Cr) | ROE |
|---|---|---|---|---|
| Nilkamal | 25.2 | 3,313 | 106 | 7.3% |
| Wim Plast | 10.7 | 367 | 58.6 | 11.4% |
| Safari | 73.5 | 1,772 | 140 | 15.8% |
| Essen (ESFL) | 101x | 180 | 10 | 7.8% |
“It’s like paying Oberoi prices for a 1RK in Virar.”
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2025 |
|---|---|
| Promoters | 68.19% |
| FIIs | 0.14% |
| DIIs | 0.00% |
| Public | 31.67% |
IPO excitement + SME scarcity = Retail FOMO. But promoters selling into that excitement? Slightly sus.
“If the captain jumps ship while you’re still boarding, maybe don’t unpack yet.”
13. EduInvesting Verdict™
Essen is riding the thin plastic wave — fast growth, niche segment, but priced like it cures cancer. Good margins, but slipping. Strong clients, but concentration risk. Decent return ratios, but not at ₹413/share.
“Not trash, but definitely not worth wrapping in gold foil either.”
Written by EduInvesting Team | 25 July 2025
Tags: Essen Speciality Films Ltd, EVA Sheets, Plastic Films, Q1 FY26 Results, SME IPO, Edu Style Article, EduInvesting Premium
