Ester Industries surges 10% on pact with Shaw Industries Group, USA

Ester Industries was locked in upper circuit of 10% at Rs 67.30 on BSE in otherwise weak market after the company announced that it has entered into long term agreement with Shaw Industries Group Inc, USA to supply circa 2,500 tonnes per annum of stain resistant master batch to world’s leading carpet manufacturer.

“The total size of this single order is estimated to be around Rs 900 million per year which is more than double the Company’s FY2017 speciality polymer revenues which amounted to Rs 430 million. The agreement is open ended with the first purchase order received and shipment slated to commence in February 2018,” Ester Industries said in a press release.

Shaw Industries Group, Inc. supplies carpet, resilient, hardwood, laminate, tile and stone flooring products and synthetic turf to residential and commercial markets worldwide. It is a wholly owned subsidiary of Berkshire Hathaway, Inc. with approximately 20,000 associates across the globe.

In past three months, the stock outperformed the market by appreciating 61% against 8% rise in the S&P BSE Sensex. It touched 52-week high of Rs 74 on January 12, 2018 in intra-day trade.

Till 12:33 PM; a combined 210,629 shares changed hands and there were pending buy orders for 941,741 shares on BSE and NSE.

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