This Smallcap stock engaged in the business of manufacturing and selling of injection moulded plastic components, various requirements from sub-assemblies of OEMs jumped up to 2.3 percent in the day’s trade following the company incorporating subsidiary Shaily Innovations FZCO for development of drug deliveries.
Price Action
With a market capitalization of Rs. 6,934.26 Crores, the shares of Shaily Engineering Plastics Limited touched a day’s high of Rs. 1,525 per equity share, up 2.3 percent. The stock reiterated from the day’s high and was trading at Rs. 1,509 which is 1.25 percent higher from its previous day’s close price of Rs. 1,490.35. The stock delivered a return of 345.23 percent and outperformed the Nifty Index in the past year.
What Happened
The company’s stock rose after they announced the incorporation of a wholly owned subsidiary named as Shaily Innovations FZCO in Dubai on 1st January 2025. It will related to the service industry. They will operate in the business of design and development of drug delivery device contracts. The initial subscription amounts to AED 1,00,000 and will hold 100 percent of the shareholding of the wholly owned subsidiary.
About the Company
Shaily Engineering Plastics Limited which specializes in manufacturing and exporting high-precision injection-molded plastic components. It was established in 1987, the company serves diverse sectors including healthcare, consumer goods, and automotive. Its business model focuses on customized solutions, offering products like medical devices and FMCG packaging. With a strong focus on quality and sustainability, Shaily utilizes advanced engineering plastics and renewable materials while catering to both domestic and international markets, with exports accounting for approximately 76 percent of its revenue.
Financials & Ratios
Its Revenue from operations improved by 21.51 percent year on year from Rs. 158 Crores in Q2FY24 to Rs. 192 Crores in Q2FY25, accompanied by a profit of Rs. 11 Crores to a profit of Rs. 22 Crores.
In terms of Return ratios, the return on equity (RoE) stood at 13.31 percent and a return on capital employed (RoCE) of 14.06 percent in FY24. They have a debt-to-equity ratio of 0.46 as of FY24.
Shareholding Pattern
As of September 2024, the promoters were holding a share of 43.81 percent, Foreign Institutional Investors (FII) were holding around 3.11 percent, Domestic Institutional Investors (DII) were holding around 12.35 percent, and the remaining 40.73 percent held by Public Investors.
Written by Santhosh S
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