1. At a Glance
Shaily Engineering Plastics Ltd has turned into the plastic Picasso of India—moulding not just polymers but investor fortunes. With amarket cap of ₹11,378 croreand aQ2FY26 PAT of ₹51.2 crore (up 134% YoY), the Vadodara-based precision plastic specialist is suddenly everyone’s favourite healthcare plastics story. Itsoperating margin shot up to 31%, from just 25% a few quarters ago, powered by rising exports and higher value-added healthcare contracts.
Thestock has surged 54.7% in the last three months—clearly, the Street is high on polymer fumes. TheP/E ratio of 77.8xscreams “premium plastic” in an industry where peers like Supreme Industries and Finolex are chilling around 25–40x. Sales for Q2FY26 stood at₹257 crore, up33.7% YoY, while EPS jumped to₹11.15.
Debt? A manageable₹189 crore, withDebt-to-Equity at 0.30x—lighter than a plastic spoon. Promoter holding is a solid43.7%, foreign investors have climbed to11.3%, and DIIs hover near13.7%. Meanwhile, exports contribute a stunning78.6% of revenue, proving that “Make in Vadodara” is more global than it sounds.
2. Introduction
Once upon a polymer, a humble Gujarat-based moulder decided it didn’t want to just make plastic buckets for Indian kitchens—it wanted to make pen injectors for global pharma giants. EnterShaily Engineering Plastics, the company that went from Tupperware to therapeutic tech.
In FY25, it clocked₹919 crore in salesand₹146 crore PAT, almost doubling profits year-on-year. The company’s new BFF? Global pharma giants riding the GLP-1 (semaglutide) diabetes and weight-loss wave. While most smallcaps chase trends, Shaily quietly became the go-to contract manufacturer for complex medical injectors—essentially turning plastic into profit syringes.
Its utilisation still sits at a modest45%, with an aim to hit80% in 2–3 years—a pipeline that could double volumes without new plants. And when it does expand, it’s not cheap capex on chairs—it’s₹100 crore for 85 million precision pen injectors. Think of it as the Tesla Gigafactory of plastic healthcare.
But is this just another overhyped “Make-in-India” bubble, or a long-term compounder hiding behind ISO certifications and vacuum metalizing? Time to inject some numbers.
3. Business Model – WTF Do They Even Do?
In short:They turn resin pellets into money.
Shaily makes precision injection-moulded plastic parts and sub-assemblies for OEMs acrossConsumer, Healthcare, and Industrialverticals. The company’s7 manufacturing facilities in Gujarat(Halol and Rania) churn out components for everything from furniture to pharma devices.
- Consumer (74.3% of revenue)– Think IKEA-style furniture fittings, FMCG packaging, LED casings, and toys. They’ve bagged new home furnishing contracts fromtwo global retail chains, with supplies expected to start in FY26. So next time your imported IKEA drawer glides smoothly, thank Vadodara.
- Healthcare (17.1%)– The crown jewel. Shaily makespen injectors, auto-injectors, wearable injectors, and drug
- delivery devices for big pharma. It’s signedsix contracts for GLP-1 and other therapies—essentially, the plastic muscle behind the Ozempic and Mounjaro craze.
- Industrial (8.6%)– The miscellaneous segment—carbon steel, auto parts, appliances, and high-performance plastics. Think of it as their side hustle to stay diversified.
The global healthcare opportunity is huge, and Shaily hasISO 13485:2016 and MDSAP certifications, giving it FDA-friendly credibility.
If you ever thought plastics can’t be sexy, wait till you see a ₹100 crore cleanroom line pumping out insulin pens.
4. Financials Overview
| Metric | Latest Qtr (Sep 2025) | Same Qtr LY (Sep 2024) | Prev Qtr (Jun 2025) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 257 | 192 | 247 | 33.7% | 4.0% |
| EBITDA (₹ Cr) | 79 | 40 | 68 | 97.5% | 16.2% |
| PAT (₹ Cr) | 51 | 22 | 41 | 132% | 24.4% |
| EPS (₹) | 11.15 | 4.78 | 8.95 | 133% | 24.6% |
Annualised EPS = ₹11.15 × 4 = ₹44.6 → P/E ≈ 55x (vs 77.8x trailing)
The operating margin (OPM) hit a record31%, up from 21% a year ago. Either Shaily found magic resin, or its pricing power in healthcare is flexing hard.
5. Valuation Discussion – Fair Value Range Only
Let’s go number-crunching.
P/E Method:Annualised EPS = ₹44.6Industry P/E (Plastic products peers median) = ~40x→ Fair Value Range = ₹1,784 – ₹2,230
EV/EBITDA Method:TTM EBITDA = ₹248 croreEV/EBITDA (peer average) = 25–35x→ EV = ₹6,200–₹8,700 croreLess Debt ₹189 crore, add Cash ≈ ₹0 (net neutral)→ Equity Value = ₹6,000–₹8,700 crore→ Fair Value per share (4.6 crore shares) = ₹1,300 – ₹1,900
DCF (educational guesstimate):Assume FCF CAGR 15% next 5 years, terminal growth 5%, WACC 10%→ Implies equity value range = ₹1,700 – ₹2,200
✅Educational Fair Value Range:₹1,300 – ₹2,200 per share.
(Disclaimer: This fair value range is for educational purposes only and not investment advice. Please do your own due diligence before making financial decisions.)
6. What’s Cooking – News, Triggers, Drama
This quarter’s highlight:Shaily granted 94,500 stock options under its ESOP 2019 plan.CFOs love options, and investors love EPS growth—it’s a win-win.
They’re also investing
