This Ashish Kacholia stock zoomed over 270% so far in CY24; hits new high

Shaily Engineering Plastics hit a new high of Rs 1,247, as they surged 12% on the BSE in Wednesday's intra-day trade in an otherwise range-bound market.

Shares of Shaily Engineering Plastics (SEPL) hit a new high of Rs 1,247, as they surged 12 per cent on the BSE in Wednesday’s intra-day trade in an otherwise range-bound market. The market price of the India’s largest exporter of plastics components surpassed its previous high of Rs 1,184 touched on November 7.

 

Thus far in the calendar year 2024, SEPL has seen its market price zoom by 273 per cent, as compared to a near 11 per cent rise in the BSE Sensex.

 

Investor Ashish Kacholia held 1.48 million equity shares representing 3.22 per cent of total equity of SEPL at the end of September 2024 quarter, the shareholding pattern data shows. Currently, this stake is valued at Rs 203 crore.

 

Meanwhile, from its June low of Rs 547.25, the stock has more-than-doubled as the company posted robust earnings for the quarter ended September 2024 (Q2FY25). The company reported profit after tax of Rs 21.9 crore against Rs 10.8 crore in Q2FY24. Revenue grew 22 per cent year-on-year (YoY) at Rs 192 crore. Earnings before interest, tax, depreciation and amortization (ebitda) rose 56 per cent YoY at Rs 41.3 crore; margin improved by 460 bps YoY to 21.5 per cent from 16.9 per cent in Q2FY24.

 

The strong growth during the quarter was mainly due to increased sales from the company’s healthcare segment, which grew by 94 per cent on a YoY basis. In the Healthcare space, the management said the company has adopted a scalable approach that will enable it to increase revenues at a faster pace over the next 5 years. The management anticipates that the medical device business will comprise 25 per cent of the company’s revenues over the next 3 years, enhancing organizational value.

 

SEPL has a long-standing relationship with reputed global and domestic clients across a wide range of end-user industries. The company operates in the niche segment of precision moulding, serving the requirement of leading global companies in their respective segments.

 

The company expects automotive product development to generate higher revenue following enhanced competence in the manufacture of carbon steel. The company’s IP-led approach is expected to strengthen business quality as drug registrations warrant a stable combination of drug and device (manufacturing) on grounds of safety, deepening the company’s respect as a research-led solutions provider.

 

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 home furnishing segment.