In today’s trading session, the stock is up 2.9% at Rs 2,550. Over the past year, the stock has already delivered multibagger returns, rallying 131%.
Shaily, a precision plastics engineering company, serves the healthcare, personal care, electronics, and industrial segments. It is among a few firms with patented technology for fixed-dose and auto-injector pens, positioning it for the upcoming launch of generic GLP-1 (semaglutide). UBS believes the market is underestimating Shaily’s growth potential and operational capabilities.
The company is expected to see increased traction and higher utilisation in its consumer and industrial segments, where it serves global clients including IKEA, GE Appliances, P&G, and Schaeffler. Shaily could also benefit from a favourable India–US trade deal and tariff reductions, while a potential large customer win in the consumer electronics and semiconductor space offers additional optionality. UBS forecasts a 75% EPS CAGR between FY25–28.
Healthcare Segment Set for Strong Growth with GLP-1 Launch: The patent for GLP-1 (semaglutide) is set to expire in 2026 in key markets such as India, Canada, and Brazil, with a total addressable market of 550–600 million devices, translating to Rs 80–85 billion in revenue by 2030. UBS’s scenario analysis projects an EBITDA CAGR of ~39% in a low-case scenario, while base/high-case projections range between 52% and 59% CAGR for FY25–30E.
Shaily has tied up with 23–24 global pharma companies for generic GLP-1, potentially capturing a 50–60% market share in these regions. High entry barriers, patented technology, and complex regulatory requirements are expected to protect Shaily’s market position. UBS projects the healthcare segment revenue CAGR at ~96% (FY25–28), with contribution rising from 21% to 55% of total revenues. Consumer and Industrial Segments to Grow Steadily: Shaily supplies global leaders like IKEA, Gillette, P&G, GE Appliances, and Schaeffler with plastic and metal components for domestic and export markets. While recent segment weakness is attributed to unfavourable tariffs, potential tariff reductions from trade deals could boost competitiveness. UBS forecasts ~18% revenue CAGR in these segments between FY25–28, with improving margins and ROCE supported by underutilised capacity. On the technical front, the 14-day Relative Strength Index (RSI) for the stock is currently at 49.9. Typically, an RSI below 30 indicates that a stock is oversold, suggesting a potential buying opportunity, while an RSI above 70 signals that it is overbought, which could indicate a potential correction.
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