Ashish Kacholia’s portfolio stock has reached a record high, surging by an impressive 90% in just three months
Ashish Kacholia’s portfolio stock, Shaily Engineering Plastics (Shaily), saw its share price reach a new high of Rs 1,659 on the BSE today, marking a 5% increase in Thursday’s intraday trade. This surge surpassed the company’s previous high of Rs 1,589.90, which was achieved on January 6, 2025. As of 10:43 AM, Shaily’s share price was trading 3% higher at Rs 1,624.20, while the BSE Sensex was down 0.28% at 77,927.
Shaily specializes in manufacturing and selling customised components made from plastic and other materials. Since October 25, 2024, the stock has surged by 90% following the company’s strong earnings report for the quarter ending September 2024 (Q2FY25). Renowned investor Ashish Kacholia holds 1.48 million shares, representing a 3.22% stake in Shaily as of the end of the September quarter, according to shareholding pattern data.
Currently, Shaily is trading under the T or Trade-for-Trade (T) group, a surveillance measure that mandates securities to be settled on a trade-to-trade basis.
In Q2FY25, Shaily reported a remarkable 103% year-on-year (Y-o-Y) increase in its consolidated profit after tax, reaching Rs 21.9 crore compared to Rs 10.8 crore in Q2FY24. Revenue also saw a 22% Y-o-Y growth, amounting to Rs 192.0 crore. Earnings before interest, tax, depreciation, and amortization (Ebitda) rose by 56% Y-o-Y to Rs 41.3 crore, with margins improving by 460 basis points to 21.5% in Q2FY25.
Analysts anticipate that Shaily will not only benefit from its strong relationships
Moving forward, CARE Ratings anticipates growth in the company’s operational performance, driven by a robust order book in the healthcare and carbon steel segments. The carbon steel segment is projected to break even in FY25, while the home furnishing segment is expected to maintain its growth momentum.
Shaily stands out as one of the few global manufacturers of insulin pens and has expanded its reach by developing proprietary IP devices. This segment presents high barriers to entry due to stringent regulatory approval requirements, resulting in low competitive pressure. Analysts at Monarch Networth Capital predict a surge in demand for injection pens for drug delivery, particularly for GLP-1 drugs used in diabetes and obesity treatment.
Shaily has been strategically increasing its capacity and aims to boost its healthcare segment revenue contribution to 25% by FY27, up from the current 18.6%. With a solid financial foundation and minimal debt, the company is poised for sustained growth and improved return ratios. Given its strong fundamentals, the company is considered a premium investment option for long-term investors.
However, potential risks include regulatory delays leading to sluggish client conversions, as highlighted in a report by a brokerage firm dated December 27, 2024. Despite these risks, the stock reached its target price of Rs 1,600 per share today.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.