Shaily Engineering Plastics Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Shaily Engineering Plastics Ltd trades at ₹3,280, in a confirmed uptrend and 20 weeks into that stage. That is +23.3% against its own 200-day average. It sits at 94% of a 52-week range of ₹1,885 to ₹3,368. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 5 straight weeks.

Today the stock is in a confirmed uptrend — week 20 of stage 2, confirmed. At ₹3,280 it trades +23.3% versus its 200-day average and sits at 94% of its 52-week range (₹1,885–₹3,368).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +3,073% while the NIFTY 500 moved +267% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 5 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Shaily Engineering Plastics Ltd's story is not scored yet against the markers our research file set on 22 August 2026. Where it sits in its own cycle: AT_PEAK. Our fortnightly research layers last read it on 22 August 2026.

Our read, 22 August 2026. Shaily's healthcare mix is lifting earnings, but the stock is a PEAK_MARGIN_VALUE_TRAP: 30% quarterly OPM is near the top of its own range and normalized earnings imply a far higher valuation than the 80.2x surface PE.

From the numbers. The weekly PE snapshot is 80.2x, 1.243x the 64.5x weekly median, with EARNINGS_DRIVEN decomposition and FII_BUYING. That is the surface read. The deterministic cycle verdict is PEAK_MARGIN_VALUE_TRAP: current OPM is…

From the price. Price stage 2, week 20 — above its 200-day line, relative strength rising.

From the research. Shaily's healthcare mix is lifting earnings, but the stock is a PEAK_MARGIN_VALUE_TRAP: 30% quarterly OPM is near the top of its own range and normalized earnings imply a far higher valuation than the 80.2x surface PE.

🚨 Where they disagree. The weekly PE snapshot is 80.2x, 1.243x the 64.5x weekly median, with EARNINGS_DRIVEN decomposition and FII_BUYING. That is the surface read. The deterministic cycle verdict is PEAK_MARGIN_VALUE_TRAP: current OPM is 29.6%, the 95th percentile of its own range, versus normalized OPM of 17%. Trailing PE is 86.4x on the curve and normalized PE is 177.6x; the operating cycle is PEAK and the stock is approximately 1% off its price peak. Earnings growth does not rebut the margin-normalization risk.

What is proven. Shaily's healthcare mix is lifting earnings, but the stock is a PEAK_MARGIN_VALUE_TRAP: 30% quarterly OPM is near the top of its own range and normalized earnings imply a far higher valuation than the 80.2x surface PE.

What is not proven yet. Sustained healthcare mix and pricing evidence that keeps consolidated OPM materially above the 17% normalized level for several quarters, while the additional pen line reaches commercial operation by end-September 2026 without another capacity revision.

🚨 What would change our mind. Sustained healthcare mix and pricing evidence that keeps consolidated OPM materially above the 17% normalized level for several quarters, while the additional pen line reaches commercial operation by end-September 2026 without another capacity revision.

🚨 Layer 1 read, 22 August 2026 — DROP. Best business here, latest-stage share — record margins, growth down from 132% to 17%, stock 1% off its high. The pen-injector business is real and getting bigger: healthcare is now about half of sales, up 85% in a year, with returns on capital of 29.3% and cash coming in faster than profits. But the shares now cost 86 times earnings struck at the highest margins the company has ever earned — 29.6% against a 17% through-cycle level, which on normalised profits is a far higher multiple still. Profit growth has fallen every quarter for four quarters, from 132% to 17%, consumer products shrank 24%, and the same management has changed its stated capacity timing repeatedly across seven documented inconsistencies.

What would change Layer 1’s mind. Consuming the timeline own test and the pen-line kill-switch: what flips this from a low-ranked hold to a drop is the additional 25-million pen line MISSING its end-September 2026 start — because that is the third revision of the same date, and the whole growth case for FY27 rests on delivering more than 36 million pens from capacity that must exist first. What would lift it back up is the opposite pairing: the line starting on time AND consolidated operating margin holding above 24% through…

The test written in advance. Sustained healthcare mix and pricing evidence that keeps consolidated OPM materially above the 17% normalized level for several quarters, while the additional pen line reaches commercial operation by end-September 2026 without another capacity revision. — the thesis as written as stated by the next result.

The test written in advance. Valuation and Peak-Margin Value Trap — Valuation and Peak-Margin Value Trap Consolidated OPM, gross-margin trend, healthcare mix, pricing pass-throughs, and normalized PE updates. by the next result.

The test written in advance. Geopolitical Contract Loss & Geographic Concentration — Geopolitical Contract Loss & Geographic Concentration Additional disclosed cancellations, deferred tenders, and Abu Dhabi contract-backing updates. by the next result.

What the company does. Healthcare revenue expanded 85% YoY in Q1 FY27 to Rs 142 Cr, reaching roughly 51% of consolidated sales as pen-injector volumes scaled. Additional 25 million pen capacity is targeted for end-September 2026, taking installed capacity to approximately 75 million pens annually; Abu Dhabi remains a FY28 capacity option. The current 80.2x PE is only the surface read: deterministic normalization places OPM at the 95th percentile and normalized PE at 177.6x, so execution and margin mean reversion are the central risks.

🚨 What the surface reading misses. The surface reading is: FY26 revenue increased 25.9% YoY. The research reads it further: Revenue growth confirms the healthcare-led expansion but does not establish that peak margins or valuation are durable.

🚨 What the surface reading misses. The surface reading is: FY26 PAT increased 82.8% YoY. The research reads it further: PAT growth is a confirmed outcome, but the cycle engine warns that current earnings include peak-margin conditions.

Lever 2 · Value-added mix — BUILDING. Healthcare mix supports the current margin profile. The deterministic normalization nevertheless puts current OPM at the 95th percentile and normalized OPM at 17%, so the durable-margin conclusion is unproven. What proves it keeps working: Healthcare Mix Expansion. It stops working if Healthcare mix declines, freight and polymer costs cannot be mitigated, or consolidated OPM moves toward its normalized range.

Sources: our stock research file (22 August 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Shaily Engineering Plastics Ltd reported ₹281 Cr of revenue in the Jun 26 quarter, +13.8% year on year. That is the 11th straight quarter of year-on-year growth. Over 4 years it has compounded at 14.9% a year. The last full year, FY26, came in at ₹991 Cr. The last four reported quarters add to ₹1,025 Cr.

FY26 revenue came in at ₹991 Cr (+25.9% on the year), capping 4 years at 14.9% compound. The latest quarter (Jun 26) printed ₹281 Cr, +13.8% year on year — the 11th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +20.7% growth against the decade's 14.9% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +19.9% over the last 4 quarters against +24.1%/yr over the last 8 — rolling over; TTM profit +50.4% vs +68.5%/yr — rolling over.

FY26-Q4. revenue ₹237 Cr and profit ₹40 Cr as reported.

FY27-Q1. revenue ₹281 Cr and profit ₹48 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Shaily Engineering Plastics Ltd's operating margin is 30.0% in the Jun 26 quarter, +2.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 5 fiscal years the operating margin has ranged 15.0% to 28.0%. The current quarter is running above every full year in that window.

Why this happened. Healthcare mix supports the current margin profile. The deterministic normalization nevertheless puts current OPM at the 95th percentile and normalized OPM at 17%, so the durable-margin conclusion is unproven.

The latest quarter's operating margin is 30.0%, +2.0 pp against the same quarter a year ago. Across 5 fiscal years the operating margin has ranged 15.0%–28.0%, and FY26's 28.0% is the top of that band — a record year.

Why the margin moved: operating margin went +1.9 pp year on year while gross margin went +6.2 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

FY26-Q4. revenue ₹237 Cr and profit ₹40 Cr as reported.

FY27-Q1. revenue ₹281 Cr and profit ₹48 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Shaily Engineering Plastics Ltd earned ₹48.0 Cr of net profit in the Jun 26 quarter, +17.1% year on year. It is the 12th consecutive quarter of growth. Full-year FY26 profit was ₹170 Cr. The 4-year compound rate is 48.5%. That is 17.1% of the quarter's revenue. The same quarter a year earlier earned ₹41.0 Cr.

Jun 26 profit was ₹48.0 Cr, +17.1% year on year — the 12th consecutive quarter of growth. On the full year, FY26 printed ₹170 Cr (+82.8%), and the 4-year compound rate is 48.5%.

Why profit moved: revenue contributed +13.8% and the margin +2.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +58.7% vs revenue +20.7%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

FY26-Q4. revenue ₹237 Cr and profit ₹40 Cr as reported.

FY27-Q1. revenue ₹281 Cr and profit ₹48 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 134% of Shaily Engineering Plastics Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹226 Cr of operating cash against ₹170 Cr of profit. After ₹179 Cr of capital spending, ₹47.0 Cr was left as free cash.

FY26: operating cash of ₹226 Cr against reported profit of ₹170 Cr, leaving free cash of ₹47.0 Cr after ₹179 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 134% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 134%: the cash cycle stretched 43 days between FY22 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 2.7× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Shaily Engineering Plastics Ltd's cash conversion cycle runs 135 days in FY26, up from 92 days in FY22. Capital spending ran ₹341 Cr over the last 3 years. At FY26 sales of ₹991 Cr each day of that cycle holds about ₹2.7 Cr, so roughly ₹367 Cr sits inside the business at any moment.

Why this happened. Healthcare device revenue expanded 85% YoY in Q1 FY27 to Rs 142 Cr. The additional 25 million pen line is targeted for end-September 2026 and FY27 deliveries are expected to exceed 36 million, subject to partner and customer supply-chain continuity.

FY26: debtors at 79 days, inventory at 129 days — roughly 4.2 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 135 days, looser than FY22's 92.

The full loop: cash goes out to suppliers and production on day 0; stock waits 129 days to sell; customers pay about 79 days after that; and suppliers themselves are paid at 74 days — netting out to the 135-day cycle.

In money terms: at FY26 sales of ₹991 Cr, each day of the cycle holds about ₹2.7 Cr — so the 135-day loop keeps roughly ₹367 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹341 Cr over the last 3 fiscal years against ₹127 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹29.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Shaily Engineering Plastics Ltd earns a ROCE of 29% in FY26. That is up from a trough of 11% in FY23. Return on invested capital clears the cost of that capital by +9.1 percentage points, so growth here adds value rather than only size. The wiring behind it is 17.2% net margin on 0.86× asset turns.

FY26 ROCE is 29%, recovered from a FY23 trough of 11% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 17.2% net margin × 0.86× asset turns × 1.60× balance-sheet leverage ≈ 23.7% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 21.1% − 12.0% = a +9.1 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Shaily Engineering Plastics Ltd carries total debt of ₹177 Cr against shareholder equity of ₹717 Cr as of Mar 26, a debt-to-equity of 0.25 — effectively unlevered. On the annual view that ratio went from 0.48 in FY22 to 0.25 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹177 Cr against shareholder equity of ₹717 Cr — a debt-to-equity of 0.25. On the annual view, debt-to-equity went from 0.48 (FY22) to 0.25 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions added 16.1 points of Shaily Engineering Plastics Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 18.2% of the company. Domestic institutions moved +5.3 points over the same window, to 14.8%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +16.1 points over 8 quarters to 18.2%; Domestic institutions: +5.3 points over 8 quarters to 14.8%; Promoters: −2.7 points over 8 quarters to 41.1%.

Why the register moved: foreign institutions drove it (+16.1 points), alongside domestic institutions (+5.3 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Shaily Engineering Plastics Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Shaily Engineering Plastics Ltd trades at 85.3× P/E, mid-range by its own standards (69th percentile). Its long-run median P/E is 68.6×, measured across 4.3 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 85.3× is mid-range by its own standards (69th percentile), against a long-run median of 68.6× measured over 4.3 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +82.5% against a +46.0% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 3y, of the +109.9%/yr price move, ~+66.4%/yr came from earnings growth and ~+43.5 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Shaily Engineering Plastics Ltd reads as mixed on its fundamental arc. Mixed — growth is normalizing off a hyper-growth base: profit growth has eased from +90.4% at its peak to +50.4% but is still expanding, ROCE lifting at 34.1%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

4-Factor Sector Score

60.3/100 — rank 3 of 8 in Plastics - Plastic & Plastic Products · 100% evidence confidence

Shaily Engineering Plastics Ltd scores 60.3 out of 100 against the 8 companies it is compared with in Plastics - Plastic & Plastic Products, ranking 3. Strong business, demanding price: keep it on the quality list, but require either earnings upgrades or valuation compression.

The four contributions add to the total exactly: 30.4 + 18.5 + 0.8 + 10.6 = 60.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Shaily Engineering Plastics Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

Pen Capacity Timing and Total Capacity Mismatch · 10 August 2026. The February 2026 call described the planned India expansion as taking total capacity to 80 million, while the May 2026 call indicated that the additional 25 million capacity would come in by July or August. The August 2026 call instead projects approximately 75 million of total installed pen injector capacity, with the additional capacity becoming operational only by the end of September; management explained the timing change through supplier ramp-up, but did not reconcile the lower total capacity figure.

Consumer Electronics Timeline Mismatch · 20 May 2026. In the Feb 2026 call, management estimated that the consumer electronics segment was expected to go live in 12 to 18 months. However, in the May 2026 call, they announced that they had already successfully commenced commercial supplies to their consumer electronics customer in Q4 FY26.

Consumer Segment Reversal · 20 May 2026. In the Nov 2025 call, management stated that the consumer business would see overall growth for the year. However, in the May 2026 call, they reported a full-year degrowth of 9% for the consumer segment due to weak demand.

Device Volume Target Underperformance · 20 May 2026. In the Feb 2026 call, management maintained that their FY26 target of approximately 30 million pens remained broadly the same. However, in the May 2026 call, they acknowledged that they only achieved 23.3 to 23.5 million devices, admitting that their capacities were unable to produce what was projected.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions