Ashish Kacholia portfolio stock freezes 5% upper circuit; up 245% in 1 year

Shaily Engineering Plastics share price locked in upper circuit of 5 per cent at Rs 1,792.20, hitting a new high on the BSE in Friday's intra-day trade, in an otherwise range-bound market

Shaily Engineering Plastics (Shaily) share price locked in upper circuit of 5 per cent at Rs 1,792.20, hitting a new high on the BSE in Friday’s intra-day trade, in an otherwise range-bound market. Currently, Shaily is trading under 'T' or Trade-for-Trade (T) group. The T group is a surveillance measure that requires securities to be settled on a trade-to-trade basis.

 

The stock price of the smallcap company surpassed its previous high of Rs 1,750, which it touched on February 4, 2025. Till 01:38 PM; a combined around 42,000 shares had changed hands on the NSE and BSE. In comparison, the BSE Senex was up 0.08 per cent at 74,400.

 

Ace investor Ashish Kacholia held 1.48 million shares, or 3.22 per stake, in Shaily at the end of the December 2024 quarter, shareholding pattern data shows. Ashish Kacholia held 5.55 per cent stake in the company.

 

Shaily is engaged in the manufacture and sale of customised components made up of plastic and other materials. The company is a niche player in the injection molding space with a growing injection pen portfolio with intellectual property (IP) rights.  In the past one year, the stock has outperformed the market by surging 245 per cent, as compared to 0.37 per cent rise in the BSE Sensex. Since October 25, 2024, the market price of the company has more than doubled, or zoomed 106 per cent from the level of Rs 871.70 after the company reported robust earnings for the quarter ended September 2024 (Q2FY25) and December 2024 (Q3FY25).    In the first nine months (April to December) of the financial year 2024-25 (9MFY25), Shaily's consolidated profit after tax jumped 70 per cent year-on-year (Y-o-Y) to Rs 64.5 crore, from Rs 38.0 crore in 9MFY24. The company's revenue grew 20 per cent Y-o-Y to Rs 569.0 crore in 9MFY25 from Rs 473.3 crore in the corresponding period of the previous year. Earnings before interest, tax, depreciation and amortisation (Ebitda) increased 42 per cent Y-o-Y at Rs 123.8 crore, while margin improved 330 bps at 21.7 per cent in 9MFY25.

 

Shaily has signed six contracts with different customers for Pen Injectors for GLP 1/ other therapies during the December quarter. The company was awarded business from two global retail chains, with supplies expected to start from Q1/ Q2 FY26.

 

Analysts at Monarch Networth Capital, believe Shaily will benefit not only from its longstanding relationship with its existing customers but its ongoing emphasis on growing its Healthcare and other segments. This is also expected to catapult its operational performance into a consistent and strong growth trajectory. The company aims to strategically bolster its position in the Healthcare segment through its portfolio of injection pens with IP rights, thus opening up potential for strong revenue growth, better margins, and resistance to recession risks, the brokerage firm had said in its December 2024 initiate coverage report.  ALSO READ: Radhakishan Damani-backed Avenue Supermarts adds new stores, shares gain 3%

 

The company should see continued growth momentum and higher return ratios supported by low gearing. Such a fundamentally strong company should be viewed from a longer-term perspective and deserves to trade at a premium. Key downside risk for the company stems from regulatory delays, and hence, slow client conversions, analysts said. However, currently, the stock is trading above the target price of Rs 1,600 per share.