Shares of the company engaged in the manufacture and sale of injection-molded precision plastic components surged around 7 percent to Rs.1,024 per share following Motilal Oswal Mutual Fund’s bulk purchase.
Share Price Movement
In Thursday’s trading session, Shaily Engineering Plastics Ltd’s share price surged 6.7% to an intraday high of Rs.1,024 per share, up from its previous close of Rs.959.8. The price has since adjusted and is currently trading at Rs.989.95 per share.
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Rationale for the rise
On 11 September 2024, Motilal Oswal Mutual Fund acquired 3,14,565 shares of Shaily Engineering Plastics Ltd in a bulk purchase. The shares were bought at a price of Rs.950 each on the NSE. This transaction represents a significant investment in the company, reflecting a notable interest by the mutual fund in Shaily Engineering Plastics Ltd.
Earlier, Motilal Oswal Mutual Fund had purchased a substantial number of shares on 28 August 2024. The fund acquired 5,00,000 shares at Rs.940 each and an additional 3,11,365 shares at Rs.923.63 each, both transactions occurring on the BSE.
The bulk purchases by Motilal Oswal suggest a strategic interest in enhancing their portfolio with companies demonstrating strong fundamentals and growth potential. This move may also indicate a broader trend among institutional investors aiming to capitalize on undervalued stocks in a fluctuating market.
Financial Performance
In its recent financial update, Shaily Engineering Plastics Ltd reported net sales of Rs.179 crore for Q1 FY25, marking a 14 percent increase from Rs.157 crore in the same quarter last year. The company’s net profit for the quarter was Rs.17 crore, up from Rs.13 crore in Q1 FY24, reflecting a 30.7 percent increase.
Business Segments
Shaily Engineering Plastics Ltd operates in three key segments, Industrial, Healthcare, and Consumer. In Industrial, they produce automotive components, appliances, and high-performance engineering components.
The Healthcare segment includes platform devices, drug delivery devices, and pharma packaging. For the Consumer sector, the company offers home furnishings, FMCG packaging, LED lights, toys, and carbon steel furniture.
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Revenue Breakup
The revenue breakup of Shaily Engineering Plastics Ltd constitutes 74 percent from Consumer products, 15.3 percent from Healthcare, and 10.7 percent from Industrial products. Additionally, domestic sales account for 20.1 percent, while a significant 79.9 percent comes from exports, highlighting the company’s strong international presence.
Company Overview
Shaily Engineering Plastics Ltd. is an India-based exporter of precision plastic components, manufacturing high-value products for diverse sectors like healthcare, consumer, automotive, and FMCG.
Written by – Siddesh S Raskar
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