Multibagger small-cap stock Shaily Engineering soars 900% in 4 years & 15,400% in 11 years. Do you own? | Stock Market News

Multibagger Stock: Shaily Engineering Plastics, the country’s leading exporter of high precision engineered plastic products and components, has emerged as a standout performer on Dalal Street, delivering remarkable returns to its shareholders.

The company’s share price has surged significantly in recent years, solidifying its position as one of the biggest wealth creators in the Indian equity market.

Over the past four years, the small-cap company’s shares have followed an impressive winning streak, showcasing consistent growth without any major corrections. The stock has appreciated by 910% over the last four years, reaching ₹1,513. Over a 10-year period, the stock delivered a phenomenal 4,150% return, while in 11 years, it saw a robust 15,400% gain.

A closer look at the stock’s year-wise performance reveals its stellar performance. In CY21, the shares gained 153%, and in CY24, the stock delivered a phenomenal return of 331.77%, marking its biggest yearly gain since 2010, when it gained 775.30%.

Shaily Engineering Plastics is engaged in the manufacture and sale of customised components made of plastic and other materials. Its wide customer base spans across the healthcare, consumer, personal care, appliances, automotive, and lighting industries, supported by long-standing relationships with Swedish home furnishing majors, Unilever, Gillette, P&G, Sanofi, GE, and Garrett.

The company operates in the niche segment of precision molding and caters to demand from global industry leaders in their respective segments.

Strategic focus on expanding medical devices segment

The company generates 85% of its total revenue from the consumer segment, which includes home furnishing, personal care, steel furniture, and toys. The remaining revenue comes from the healthcare and industrial segments.

The company is placing a strong focus on its healthcare segment, which is its second-largest business and the fastest-growing. Significant investments have been made in this area, with the healthcare sector expected to be the fastest-growing in terms of plastic usage.

Plastics play a critical role in the healthcare industry, serving as essential components in medical devices, pharmaceutical packaging, surgical instruments, and various healthcare equipment due to their sterility, biocompatibility, and durability.

The demand for plastics in healthcare is projected to surge, especially driven by the COVID-19 pandemic, which emphasized the crucial role of plastics in medical applications such as PPE, diagnostic kits, and vaccine storage.

In the healthcare segment, the company engages in contract manufacturing of medical devices for major global pharmaceutical companies. It has developed a proprietary portfolio of medical and drug delivery injectable devices, including pen injectors, auto-injectors, wearable injectors, and other specialty devices. 

These are supplied to prominent international pharmaceutical companies, as well as almost all major Indian pharmaceutical players. The company aims for its medical devices business to account for about 25% of its revenues over the next three years. Some of its prominent clientele in this segment include Sanofi, Zydus, US Glenmark, Dr. Reddy’s, and Wockhardt.

The company’s Axiom platform showcased its capabilities by testing and supplying approximately 250,000 medical devices, as per the company’s recent annual report.

In FY24, the company generated 107 crore in revenue from the healthcare segment, which is almost double the ₹58 crore generated in FY23.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.