1. At a Glance
Shaily Engineering Plastics is the Gujarati overachiever of the plastics world — serving precision injection moulded parts to global OEMs while casually pulling off 28% operating margins like it’s an everyday chai biscuit. With plants in Savli and Halol, it’s not just making toys for Spin Master or LED light housings; it’s making its shareholders smile wider than a Diwali bonus. Stock’s up 94% in a year, P/E touching the clouds at ~69, and FIIs suddenly acting like they discovered plastic yesterday. In short: small-cap swagger with a billionaire’s price tag.
2. Introduction
Imagine a company that can make both Barbie doll parts and high-tech industrial plastic housings — and makes money from both without blushing. That’s Shaily Engineering Plastics. It’s not just a “mould-and-forget” player; it’s a precision plastic surgeon for industrial clients, consumer brands, and FMCG giants.
The last few years have been a case study in scaling without losing quality. Sales jumped from ₹568 Cr in FY22 to ₹854 Cr TTM FY25, and operating margins upgraded from a respectable 15% to an elite 24%. In stock market lingo, this isn’t just a rally; it’s a Bollywood transformation montage.
Of course, the market noticed — P/E has entered “nosebleed” territory, promoters have stayed rock steady at 43.72%, and FIIs have increased stake from a modest 7% to nearly 10% in a year. Whether it’s a long-term compounding play or a valuation balloon depends on whether Shaily can keep those big global orders coming.
3. Business Model (WTF Do They Even Do?)
In simple terms: Shaily makes injection moulded precision plastic components. In sarcastic terms: they make “just plastic parts” — except these parts have tolerances tighter than your neighbour’s budget.
Key segments:
- Consumer– Home furnishings (new global retail clients on board for FY26), FMCG packaging (because toothpaste tubes need love too), LED lighting housings, and toy components (via Spin Master partnership).
- Industrial Products– High-precision OEM components for automotive, electronics, and appliances.
- Special Processes– Vacuum metallizing, hot stamping, ultrasonic welding — basically plastic’s spa day before shipment.
They sell in both
domestic and export markets, and given their client list, quality and precision are the USP, not just cheap labour.
4. Financials Overview
Let’s get to the masala:
- Revenue (TTM): ₹854 Cr (up 28% YoY)
- EBITDA (TTM): ₹209 Cr (EBITDA margin ~24%)
- PAT (TTM): ₹117 Cr (up 26% YoY)
- EPS (TTM): ₹25.43
- ROE: 18.5% |ROCE: 19.4%
- Debt: ₹188 Cr borrowings (comfortable given profitability)
P/E Calculation: Current Price ₹1,758 / Annualized EPS ₹25.43 →P/E ~69.17. Yes, that’s higher than your patience level in traffic.
Commentary: Margins have improved every year for 3 years straight, which is rare in manufacturing. But P/E this high means Mr. Market expects the party to continue without police complaints.
5. Valuation (Fair Value RANGE)
| Method | Basis | Multiple | FY25/TTM Metric | FV Estimate |
|---|---|---|---|---|
| P/E | 69.17x | Apply conservative 45–55x | EPS ₹25.43 | ₹1,144 – ₹1,399 |
| EV/EBITDA | Industry avg ~20–24x | Apply 18–20x | EBITDA ₹209 Cr | ₹3,762 – ₹4,180 Cr EV → ₹1,304 – ₹1,448/share |
| DCF (10% disc, 12% growth 5 yrs) | Terminal 5% | Cash flows | ₹1,250 – ₹1,480 |
Fair Value Range: ₹1,150 – ₹1,450This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
- Global Retail Chain Orders: Supplies starting FY26 in home furnishings — revenue visibility for 2–3 years.
- Spin Master Toys: Continuing
