Shaily Engineering Plastics Limited

Basic Materials — Specialty Chemicals · NSE

₹3,115.30+₹32.00 (+1.04%)

DalalBaazaar Score

77 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Shaily Engineering Plastics Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shaily Engineering Plastics Limited engages in the manufacture and sale of precision injection moulded plastic components/products in India.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees796

Annual revenue₹981 Cr

How does it make money?

Turns over ₹981 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation. Each of its 796 employees supports ₹1.23 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.23 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 30.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE22.3%

What is the outlook?

6 analysts covering the stock expect revenue to grow about 28.9% and earnings to grow about 47.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+28.9%

Est. earnings growth+47.2%

Analysts6

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +62% while net margin moved +198% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+62%

Margin effect+198%

DalalBaazaar Score

77/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 81.3x is demanding — it needs sustained high growth to justify
✓ P/E is 22% below its own historical median of 103.9x — cheap by its own standards
✗ P/B of 19.98x is a steep premium to book

Quality vs. Valuation

Company Quality

88/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

46/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

81.3x

3Y Median

103.9x

40 monthly readings · mean 99.3x · range 41.2x–161.5x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 22% below its 3y median of 103.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 101% above the peer median of 40.4x.

vs. its own history

Cheap

103.9x median over 40 months · -22%

vs. sector peers

Expensive

40.4x median of 4 peers · +101%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

50.4x

PEG

1.18

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 15.9% to 29.3% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 8.8% to 23.7%.
Return on capital is rising
ROCE has improved from 13.0% to 30.4%.
High return on capital employed
ROCE of 30.4% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.25x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 134% against revenue up 62% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 107% against revenue up 62% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 30.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 15.9% to 29.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 22% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹40 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 134% against revenue up 62%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 101% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 17.5% CAGR
Latest reported year was 13.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 27%✓ 29.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹40 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 27%✓ 30.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 2 neutral · 2 weak

Market Cap

₹14,329 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

81.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

19.98x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹38.32

Profitable

Profitable on a per-share basis

ROE

23.7%

Strong

Strong capital efficiency

ROCE

30.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

13.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

16.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.10%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹40 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

39.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

24.6%

Good

Healthy core-business profitability

Net Margin

17.3%

Good

Strong bottom-line conversion

Current Ratio

1.25

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.08

Defensive

Steadier than the market

52W Range Position

73%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3107.8 / 3226.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

47.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹605 Cr	₹642 Cr	₹782 Cr	₹981 Cr	+17.5%
EBITDA	₹96 Cr	₹123 Cr	₹178 Cr	₹288 Cr	+44.0%
EBITDA Margin	15.9%	19.2%	22.8%	29.3%	—
PAT (Net Profit)	₹35 Cr	₹57 Cr	₹93 Cr	₹170 Cr	+69.1%
EPS	₹7.66	₹12.49	₹20.23	₹36.83	+68.8%
ROE	8.8%	12.5%	17.0%	23.7%	—
ROCE	13.0%	15.9%	22.1%	30.4%	—
Total Debt	₹188 Cr	₹209 Cr	₹188 Cr	₹177 Cr	-1.9%
Free Cash Flow	-₹22 Cr	-₹3 Cr	₹38 Cr	₹40 Cr	—

🟢 Revenue has grown at 17.5% a year over 3 years.

🟢 EBITDA has grown at 44.0% a year over 3 years.

🟢 EBITDA Margin has risen from 15.9% to 29.3% over 3 years (+13.4 pts).

🟢 PAT (Net Profit) has grown at 69.1% a year over 3 years.

🟢 EPS has grown at 68.8% a year over 3 years.

🟢 ROE has risen from 8.8% to 23.7% over 3 years (+15.0 pts).

🟢 ROCE has risen from 13.0% to 30.4% over 3 years (+17.3 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.9% a year).

🟢 Free Cash Flow has turned positive, from -₹22 Cr to ₹40 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,147 Cr

Total Liabilities

₹430 Cr

Cash & Equivalents

₹21 Cr

Operating Cash Flow

₹226 Cr

Capex

-₹186 Cr

Shareholding (proxy)

Institutional Holding

35.8%

Insider Holding

46.6%

Corporate Actions

Dividend Rate

₹3

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

5 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹3,916.67

+25.7% vs CMP

Target Range

₹3,550 – ₹4,500

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive4 mixed1 general

Shaily Engineering Plastics (NSEI:SHAILY) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Shaily Engineering Plastics vs Nifty 50 Return Comparison

Univest, 14 Oct

SHAILY Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Shaily Engineering Plastics profit surges 46%, healthcare revenue jumps 85%

scanx.trade, 08 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Explained: Why UBS expects Shaily Engineering shares to rise another 43%

CNBC TV18, 21 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Shaily Engineering Plastics (BSE:501423) Stock Forecast & Analyst Predictions

Simply Wall Street, 05 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingRisk

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑