Global brokerage firm UBS, in its latest note, initiated coverage on Shaily Engineering Plastics, the country’s leading exporter of high-precision engineered plastic products and components, with a ‘Buy’ rating and a record target price of ₹4,000. This implies an upside potential of 60% from the stock’s latest closing price.
According to UBS, Shaily is one of the few global companies with patented technology for fixed-dose and auto-injector pens, positioning it strongly for the launch of generic GLP-1 therapies. The brokerage believes the market is significantly underestimating both the scale of this opportunity and Shaily’s capability to capitalise on it.
UBS said that the GLP-1 (semaglutide) patent is set to expire in 2026 in key markets, including India, Canada, and Brazil. It estimates that these geographies together represent a total addressable market of 550–600 million devices, translating into ₹80–85 billion in revenue by 2030.
UBS added that further levers to improve margins from current levels strengthen the case for potential positive surprises versus current expectations.
UBS highlighted that 23–24 clients are already contracted for the GLP-1 launch, as per the company’s management. This underpins the brokerage’s forecast of a 96% revenue CAGR for the healthcare segment between FY25 and FY28E, up from the current ₹1.6 billion.
The brokerage emphasised that entry barriers in this segment are substantial, given Shaily’s patented technology and stringent regulatory requirements for filing drug-delivery modes—factors that make it difficult for pharmaceutical companies to switch injector vendors. Limited global capacity for manufacturing such devices further strengthens Shaily’s strategic importance in the supply chain.
UBS further noted that the company could benefit from a favourable India-US trade deal and potential tariff reductions. The brokerage added that the company is in the process of onboarding a large customer in the consumer electronics and semiconductor space, which provides additional upside optionality. Taken together, these drivers led UBS to forecast a 75% EPS CAGR over FY25–28.
Shaily Engineering share price trend
Shaily Engineering share price 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 two 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 700% over this period, reaching ₹1,513. Over a 10-year period, the stock delivered a phenomenal 7042% return, while in 11 years, it saw a robust 25410% 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%. In the current year so far, the shares continued to maintain the same momentum, gaining by another 73%.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
