Shaily Engineering gains 4% on ₹423 cr order; UBS's top 2026 midcap pick

UBS, in its Feb 15 report, named Shaily Engineering as its top midcap idea for 2026, citing a likely growth step-up driven by opportunities in generic semaglutide delivery devices

Shares of Shaily Engineering Plastics Ltd. rose over 4 per cent on Thursday on securing a ₹423 crore order from a domestic pharmaceutical company to supply pen injectors.

 

The company's stock rose as much as 4.49 per cent during the day to ₹2,028.7 per share, the biggest intraday gain since February 9 this year. The stock pared gains to trade 3.8 per cent higher at ₹2,009 apiece, compared to a 0.19 per cent advance in Nifty 50 as of 09:53 AM. 

 

Shares of the company snapped a five-day losing streak and currently trade at 5.1 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 12 per cent this year, compared to a 2.3 per cent decline in the benchmark Nifty 50. Shaily Engineering has a total market capitalisation of ₹9,159.31 crore. 

Shaily Engineering wins orders worth ₹423 crore 

Shaily Engineering Plastics secured a manufacturing and commercial supply agreement from a large domestic pharmaceutical company for the supply of pen injectors. The customer’s name has not been disclosed due to confidentiality reasons, the company said in an exchange filing. 

 

The contract, awarded by a domestic entity, is valued at approximately ₹423 crore and will be executed over a period of four years, the company said. Under the agreement, Shaily Engineering will undertake the manufacturing and commercial supply of pen injectors for the pharmaceutical major. The company also clarified that neither its promoter nor promoter group entities has any interest in the awarding entity.

 

Shaily Engineering Plastics is engaged in the manufacture and sale of injection-moulded precision plastic components and sub-assemblies for various requirements of Original Equipment Manufacturers (OEM).  CHECK Stock Market LIVE Updates

Shaily Engineering Q3 and outlook

Shaily Engineering reported a 48.33 per cent year-on-year (Y-o-Y) rise in net profit to ₹37.38 crore for the quarter ended December 2025, compared with ₹25.20 crore in the corresponding quarter last year. Revenue from operations increased 26.78 per cent to ₹250.50 crore in the December 2025 quarter, up from ₹197.58 crore in the year-ago period.

 

UBS has reiterated its bullish stance on Shaily Engineering, naming it its top midcap idea for 2026, citing a likely growth step-up driven by opportunities in generic semaglutide delivery devices.

 

The brokerage, in a February 15 report, said Shaily is well positioned to benefit from the launch of generic semaglutide, with strong year-on-year performance in the December quarter, although sequential profitability was impacted by one-off factors.

 

UBS highlighted that the company will have a production capacity of 80 million pen injectors by the end of July, with the entire capacity already contracted. Given the current demand environment, the brokerage believes Shaily could surpass its estimate of 55 million pens in FY27.

 

==========

 

(Disclaimer: The views and investment tips expressed by the analysts in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.)