1. At a Glance
Essen Speciality Films Ltd (NSE: ESFL) is the kind of company that makes your bathroom look like IKEA but makes your portfolio look like a horror film. The ₹552 crore market cap baby from Rajkot is a specialist in all things EVA, PEVA, and LDPE — which, for most of us, just means “plastic that looks fancy and costs your self-respect.”
At ₹222 per share, down a sizzling-64% YoY, the stock has given its shareholders enough plastic burns to last a lifetime. Revenues for the latest quarter (Q2FY26) stood at₹48.36 crore, up 4.4% YoY, whilePAT slipped 17.9%to ₹5.19 crore. ROE and ROCE are crawling at7.9%and11.5%respectively — not bad, but not IKEA-level premium either.
EPS for the quarter is ₹2.09, meaning an annualised ₹8.36 — translating to aP/E of 26.5xif you’re an optimist, and “too much plastic for the price” if you’re not. Still, the company pays dividends (0.45% yield), so maybe it’s not all trash.
Welcome to the world of Essen Speciality — where yoga mats, shower curtains, and rain ponchos are serious business, and the only thing thinner than the EVA film is the investor patience.
2. Introduction
Essen Speciality Films Ltd (ESFL) has had quite the journey — from manufacturing shower curtains and yoga mats to being listed on NSE’s SME platform and now living the classic “post-IPO sob story.”
Incorporated in 2002, the company found its niche supplying EVA and LDPE-based plastic products to global giants likeIKEA, Walmart, Kmart, and Bed Bath & Beyond. Basically, every time you bought a table cover that refused to fold properly, there’s a good chance Essen made it.
But despite a strong export base —74% of FY23 revenue came from international markets— the stock has gone from its 52-week high of ₹745 to a floor-scraping ₹222. If your mutual fund manager told you it’s a “home décor play,” he probably meant the part where you decorate your house with red flags.
Still, the fundamentals tell an interesting story. Sales are growing modestly (14% YoY), profitability has dipped (-36%), but balance sheet strength and export orders are keeping it alive. With low debt (Debt/Equity 0.17) and a decent current ratio (2.48), Essen isn’t about to collapse. It’s just learning how to swim through global demand volatility — like a yoga mat in the rain.
3. Business Model – WTF Do They Even Do?
Alright, let’s simplify. Essen Speciality Films Ltd is basically India’s high-end plastics craftsman. It takes EVA and LDPE — those soft, flexible polymers that make yoga mats cushy and shower curtains waterproof — and converts them into dozens of household and décor products.
Their product mix can turn any Indian flat into a Pinterest dream:
- Bath & Accessories:PEVA shower curtains, bathtub mats, and bathroom liners.
- Kitchen & Dining:Chopping boards, EVA foam placemats, and table covers your mom will cover again with plastic.
- Storage & Organization:Drawer mats and desk mats, because dust is eternal.
- Fitness & Lifestyle:Yoga mats, interlocking tiles, and kids’ foam puzzle mats.
- Home Décor:Artificial plants and flowers that last longer than real relationships.
- Outdoor & Utility:Vehicle covers, rain ponchos, tarpaulins.
- Customised Products:From baby shower caps to delivery bags — literally “from cradle to courier.”
Their clients? A dream lineup —IKEA, Walmart, H&M, Home Depot, Kohl’s, andRusta. In short, Essen manufactures for brands you already overpaid for abroad.
However,75% of FY23 revenue came from just five customers. That’s customer concentration so tight it could choke your supply chain.
The company’sISO 9001:2015-certified plantchurns out9,450 MTPAof product. That’s not huge, but efficient for its niche. And since it exports to24 countries, the business runs on thin margins, global pricing pressures, and shipping logistics — three things Indian promoters usually handle with pooja and prayers.
4. Financials Overview (Quarterly Results)
Data Type: Quarterly (Standalone)
| Metric | Q2 FY26 (Sep 2025) | Q2 FY25 (Sep 2024) | Q1 FY26 (Jun 2025) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹48.36 Cr | ₹46.31 Cr | ₹41.16 Cr | +4.41% | +17.5% |
| EBITDA | ₹9.44 Cr | ₹7.68 Cr | ₹3.52 Cr | +22.9% | +168% |
| PAT | ₹5.19 Cr | ₹6.32 Cr | ₹1.78 Cr | -17.9% | +192% |
| EPS (₹) | 2.09 | 2.55 | 0.72 | -17.9% | +190% |
Annualised EPS (₹)= 2.09 × 4 =₹8.36At
CMP ₹222 →P/E ≈ 26.5x
Commentary:Revenue grew mildly, but profits slipped YoY as the company probably gave IKEA a discount and the CFO a headache. Still, sequentially it’s up big-time — QoQ PAT grew almost 3x, proving that operating leverage works when the factory actually runs at capacity.
EBITDA margins bounced back to19.5%, reversing a dull previous quarter. The plastic mats may be soft, but the numbers are finally showing some bounce.
5. Valuation Discussion – Fair Value Range Only
Let’s bring out the abacus and pretend we’re smart.
Method 1: P/E MethodAnnualised EPS = ₹8.36Industry P/E = 47.1Applying a fair range (20x – 40x for SME volatility):
- Fair Value Range = ₹167 – ₹334
Method 2: EV/EBITDA MethodEV = ₹560 CrEBITDA (FY25) = ₹21 CrEV/EBITDA = 26.7xSector average = 18–22xIf it trades at 20x → Fair EV ≈ ₹420 Cr → Equity Value ≈ ₹412 Cr→ Per share = ₹165 – ₹320 range again.
Method 3: DCF (simplified)Assume 12% cost of capital, 8% growth for 5 years, terminal 3%.DCF value falls in₹170–₹310range.
Fair Value Range (Educational Only): ₹165 – ₹330 per share.(Disclaimer: For educational purposes only. Not investment advice. Even your yoga instructor can’t stretch this to a buy call.)
6. What’s Cooking – News, Triggers, Drama
Ah, Essen’s newsfeed reads like a blend of ambition and compliance reports.
- Nov 2025:Announced H1FY26 results — half-year revenue ₹96.7 Cr, PAT ₹6.86 Cr. EPS for H1 = ₹2.80.
- Sept 2025:AGM approved ₹1/share final dividend (₹2.48 Cr total). The only time investors smiled.
- Oct 2024:Announced a1:5 bonus issue— a classic Indian SME move when prices are falling.
- Oct 2024:Appointed aglobal advisory firmfor business expansion (translation: foreign consultant will charge fees in dollars, advice in English, results in pending).
- IPO (2023):Raised ₹66.33 Cr and listed with fireworks — but fireworks fizzled out soon after.
No promoter pledges, no major auditor drama — so far clean. Maybe too clean for an SME stock, but hey,
