SYNOPSIS:
UBS initiates Shaily Engineering Plastics with a “buy” rating, citing strong growth visibility driven by GLP-1 device opportunities, patented injector technologies, global pharma partnerships, and an expected sharp earnings and healthcare-segment expansion.
During Monday’s trading session, shares of India’s largest exporter of plastic components serving the healthcare, personal care, electronics, and industrial segments surged nearly 5 percent on the stock exchanges, after global brokerage firm UBS initiated a “buy” call with a potential upside of more than 60 percent.
With a market cap of Rs. 11,484 crores, shares of Shaily Engineering Plastics Limited closed in green at Rs. 2,499 on BSE, up by around 1 percent, compared to its previous closing price of Rs. 2,479.95. The stock has delivered multibagger returns of more than 129 percent in one year, and has gained by around 2 percent in the last one month.
Brokerage Target & Outlook
Global brokerage firm UBS has initiated coverage on Shaily Engineering Plastics Limited with a “buy” recommendation and a target price of Rs. 4,000 per share, implying a potential upside of more than 60 percent from its current price levels.
According to the Swiss investment bank, the market is underestimating Shaily’s growth prospects or its strong execution capabilities. UBS has valued the stock at 45x the average estimated EPS for FY27-28, which represents a premium to its three-year historical average multiple of 28x, yet remains below its previous peak valuation of 60x.
UBS highlights that Shaily Engineering Plastics is one of the few players globally with patented capabilities in fixed-dose and auto-injector pen technologies. It expects meaningful improvement in utilisation levels across Shaily’s consumer and industrial segments, supported by its longstanding relationships with global clients such as IKEA, GE Appliances, P&G, and Schaeffler. The firm additionally believes that Shaily stands to gain from any positive developments in a potential India-US trade agreement, including tariff reductions that could enhance competitiveness.
The brokerage also points to optional upside from a possible large customer win in the consumer electronics or semiconductor ecosystem – areas where Shaily has been expanding capabilities. Overall, UBS projects a robust earnings trajectory for the company, forecasting a 75 percent EPS CAGR between FY25 and FY28.
Shaily Engineering Plastics is set to benefit meaningfully from the upcoming launch of generic GLP-1 (semaglutide) devices, with the drug’s patent expiring in 2026 across key markets such as India, Canada, and Brazil. These regions together represent a sizeable total addressable market of 550-600 million injection devices, translating into an estimated Rs. 8,000-8,500 crores revenue opportunity by 2030. UBS’s scenario analysis highlights the scale of this opportunity: in a conservative case, the healthcare vertical could deliver an EBITDA CAGR of ~39 percent, while the base and high-case outcomes suggest a much faster 52-59 percent CAGR over FY25-30E.
Shaily has already partnered with 23-24 global pharmaceutical companies for the generic GLP-1 rollout, positioning it to capture an estimated 50-60 percent market share in these regions. The company’s competitive edge stems from high entry barriers, patented delivery-device technology, and stringent regulatory requirements that limit new entrants.
UBS expects the healthcare division to deliver an exceptional ~96 percent revenue CAGR between FY25-28. As a result, the segment’s contribution to overall revenues is forecast to rise sharply – from 21 percent today to nearly 55 percent by FY28.
Financials & More
Shaily Engineering Plastics Limited is engaged in the business of manufacturing and sale of customised components made up of plastic and other materials. It has 7 facilities with over 200 injection moulding machines ranging from 35 tons to 1,000 tons.
Shaily Engineering reported a significant growth in revenue from operations, experiencing a year-on-year increase of around 34 percent, from Rs. 192 crores in Q2 FY25 to Rs. 257 crores in Q2 FY26.
Likewise, the company’s net profit increased during the same period from Rs. 22 crores to Rs. 51 crores, representing an impressive rise of nearly 132 percent YoY. As per the September 2025 shareholding pattern, the ace investor Ashish Kacholia holds a 3.22 percent stake in the company, under his name.
Written by Shivani Singh
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