Ashish Kacholia portfolio stock hits record high; zooms 90% in 3 months

Ashish Kacholia stock: In three months, the stock price of Shaily Engineering Plastics has zoomed 90% after the company reported robust earnings for the quarter ended September 2024

Ashish Kacholia portfolio stock: Shaily Engineering Plastics (Shaily) share price hit a new high of Rs 1,659 on the BSE today, gaining 5 per cent in Thursday's intraday trade. The stock price of the smallcap company surpassed its previous high of Rs 1,589.90, which it touched on January 6, 2025. At 10:43 AM, the Shaily share price was trading 3 per cent higher at Rs 1,624.20. In comparison, the BSE Sensex was down 0.28 per cent at 77,927.  

Shaily is engaged in the manufacture and sale of customised components made up of plastic and other materials. Since October 25, 2024, the stock has zoomed 90 per cent after the company reported robust earnings for the quarter ended September 2024 (Q2FY25).

 

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

 

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.

 

Meanwhile, for Q2FY25, Shaily reported a 103 per cent year-on-year (Y-o-Y) jump in its consolidated profit after tax at Rs 21.9 crore, as against Rs 10.8 crore in Q2FY24. Revenue grew 22 per cent Y-o-Y at Rs 192.0 crore. Earnings before interest, tax, depreciation and amortisation (Ebitda) increased 56 per cent Y-o-Y at Rs 41.3 crore; margin improved 460 bps at 21.5 per cent in Q2FY25.

 

Analysts believe the company will benefit not only from its longstanding relationship with its existing customers but its ongoing emphasis on growing its Healthcare and other segments would 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 intellectual property (IP) rights, thus opening a potential for strong revenue growth, better margins, and resistance to recession risks.

 

Going forward, CARE Ratings expects growth in the company's operating performance, supported by strong order book in the healthcare segment and the carbon steel segment, which is expected to achieve breakeven in FY25, along with sustained growth momentum in the home furnishing segment.

 

Shaily is among the few manufacturers of insulin pens globally and has expanded its footprint by developing its own IP devices. This is a high-entry barrier segment with low competitive intensity due to complex regulatory approval requirements. Analysts at Monarch Networth Capital believe injection pens for drug delivery should see strong growth as demand for GLP-1 (Glucagon-Like Peptide) drugs for diabetes and obesity treatment gains momentum. Shailey has been strategically increasing its capacity and aims to increase its healthcare segment revenue contribution to 25 per cent by FY27e vs. 18.6 per cent currently.

 

"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 stems from regulatory delays and hence, slow client conversions," the brokerage firm had said in a company report dated December 27, 2024.

 

The stock achieved target price of Rs 1,600 per share today.