Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by capacity expansion and diversification into high-margin sectors.
Basis of our Recommendation
Shaily Engineering is strategically expanding its operations, particularly in the high-margin healthcare sector with a focus on GLP-1 injectable drug delivery devices. The company is targeting significant capacity increases and diversifying into semiconductor packaging, supported by strong customer commitments and a favorable long-term outlook. However, risks include potential delays in regulatory approvals and competition from emerging oral therapies.
Why We Like This Stock
- Targeting capacity expansion to 150-160 million units by FY28, driven by strong demand for GLP-1 injectors
- Diversification into semiconductor packaging aligns with India's growing semiconductor ecosystem
- Management projects robust revenue growth of 29.3% CAGR, with significant margin expansion
Things To Watch Out For
- Potential long-term impact from emerging oral GLP-1 therapies
- Delays associated with customer-led regulatory approvals in healthcare
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 644 | 787 | 991 | 1,192 | 1,434 |
| Profit Before Tax (Cr.) | 70 | 119 | 223 | 271 | 331 |
| PBT Margin | 10.9% | 15.1% | 22.5% | 22.7% | 23.1% |
| Net Profit (Cr.) | 61 | 96 | 179 | 217 | 265 |
| EPS | 13.3 | 21.0 | 38.9 | 47.2 | 57.6 |
Company Overview
Show Company Profile
Shaily Engineering Plastics Limited engages in the manufacture and sale of precision injection moulded plastic components/products in India. The company offers specialty devices, platform devices, inhalers, sprays and pumps, intricate insulin injector pens, auto-injectors, and specialty packaging and containers for solid and liquid formulations, as well as providing contract development and manufacturing services for the pharmaceutical industry. It also offers kitchen and cooking devices, and storage and cleaning products; and sheet steel furniture products, including cabinets, drawer units, tables, and storage units. In addition, the company provides plastic components for lighting, appliances, and automotive applications; and razors, pumps, sprays and packaging for the personal care market. It also exports its products to approximately 40 countries. Shaily Engineering Plastics Limited was incorporated in 1980 and is based in Vadodara, India.