Ester Industries gains after announcing plans to setup R&D, innovation facility at Gurgaon

Ester Industries rose 2.1% to Rs 51.05 at 10:32 IST on BSE after the company announced its plans to setup a research and development and innovation facility at Gurgaon at an approximate cost of Rs 50 crore.

The announcement was made after market hours yesterday, 16 January 2017.

Meanwhile, the S&P BSE Sensex was down 28.79 points or 0.11% at 27,259.38

On BSE, so far 1.58 lakh shares were traded in the counter as against average daily volume of 69,708 shares in the past one quarter. The stock hit a high of Rs 52.50 and a low of Rs 50.10 so far during the day.

The stock had hit a 52-week high of Rs 74.25 on 15 January 2016. The stock had hit a 52-week low of Rs 33.95 on 29 February 2016. The stock had outperformed the market over the past 30 days till 16 January 2017, rising 28.21% compared with the 3.01% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 0.4% as against Sensex's 2.72% decline.

The small-cap has equity capital of Rs 41.70 crore. Face value per share is Rs 5.

Ester Industries announced that the company plans to invest Rs 50 crore to set up a research and development (R&D) and innovation complex at Gurgaon. This centre proposes to house 40 scientists/ engineers who will be responsible for researching and developing breakthrough innovations, Ester Industries said.

The company has also recently filed a new patent under PCT for a master batch to produce specialised polyester yarn, Ester Industries said. With this latest filing, the total patent tally becomes nine. The master batch is for a cationic dyeable yarn which offers value advantages both from a quality and cost perspective, the company said. The product offers deeper and darker colours at a far more competitive price, it said. This product has already been approved by some Indian entities and is believed to enjoy strong potential in China and Taiwan, it added.

Speaking on the development, Arvind Singhania, Chairman, Ester Industries said the company has already developed some exciting products that have tremendous potential in various applications. The setting up of R&D centre will enable the company to further enhance and expand its capabilities to innovate with further breakthrough products, Arvind Singhania said.

Ester Industries reported net loss of Rs 5.04 crore in Q2 September 2016 as compared to net profit of Rs 3.97 crore in Q2 September 2015. Net sales dropped 18.94% to Rs 162.03 crore in Q2 September 2016 over Q2 September 2015.

Ester Industries is one of leading producers of polyester films, engineering plastics and speciality polymers.

Powered by Capital Market - Live News