Shaily Engineering Plastics Ltd. (SEPL) saw its shares climb over 7% to Rs 2,324.00 on Tuesday, building on a 2.45% gain from the previous day. This surge is part of a broader trend of robust returns for the stock across various timeframes.

Stock Performance

SEPL's stock has demonstrated impressive gains:

Company Overview

Established in 1987 by Mike Sanghvi, Shaily Engineering Plastics has grown to become India's largest exporter of plastic components. The company boasts:

• Over 2,000 employees
• Seven manufacturing units
• More than 200 injection molding machines

SEPL caters to diverse sectors including medical, healthcare, consumer, and automotive. It specializes in high-performance polymers and holds the distinction of being the only licensed processor of Torlon in India.

Trading Insights

Tuesday's trading session saw a significant spike in activity:

• Trading volume reached 45 times the 30-day average
• The Relative Strength Index (RSI) stood at 56

Analyst Outlook

The stock is currently covered by four analysts:

• Two recommend a 'buy'
• Two suggest a 'hold'

The average price target indicates a 3.7% upside potential from current levels.

This recent surge and the overall positive performance of Shaily Engineering Plastics reflect the company's strong position in the plastic components export market and its diversified presence across key sectors. Investors and market watchers will likely continue to monitor the stock's performance given its impressive returns over the past year.

Shaily Engineering Plastics Limited (SEPL) has reported strong financial results for the first quarter of fiscal year 2026, with significant growth across key metrics. The company's focus on the healthcare segment, particularly in GLP-1 pen devices, has been a major driver of its performance.

Financial Highlights

• Revenue surged by 38% year-on-year to ₹246.70 crores
• EBITDA jumped 95% to ₹70.40 crores, with margins expanding to 28.5%
• Profit After Tax (PAT) increased by 136% to ₹41.10 crores
• Cash PAT stood at ₹52.60 crores, up 91% year-on-year

Segment Performance

• Healthcare segment revenue soared 181% to ₹77.20 crores, now contributing 31% of total revenue
• Consumer segment revenue grew 14% to ₹151.40 crores
• Industrial segment revenue slightly declined to ₹18.10 crores

Operational Highlights

• Processed 7,016 tonnes of polymers, up from 5,902 tonnes in Q1 FY25
• Machine utilization rate improved to 49%, compared to 39% in the same quarter last year
• Exports accounted for 76% of total revenue

Healthcare Segment Expansion

SEPL has made significant strides in its healthcare business, particularly in GLP-1 pen devices:

• Commenced commercial manufacturing of GLP-1 pens for semaglutide
• Installed capacity for an additional 25 million pens per annum, expected to be operational by the end of Q2 FY26
• Planning another expansion of 25 million pens for a variant of semaglutide pen
• Total planned capex of ₹125.00 crores for capacity expansion in FY26

Future Outlook

• The company expects the healthcare segment to drive significant revenue and profitability growth
• Management is in discussions with multiple customers regarding volume commitments and capacity requirements for the next 3 to 5 years
• SEPL is aligning its manufacturing capacity and global footprint accordingly

Management Commentary

Amit Sanghvi, Managing Director of Shaily Engineering Plastics Limited, commented on the results: "We have delivered strong revenue growth of 38% year-on-year to ₹247 crores with an EBITDA margin expanding by 840 basis points to 28.5%. The growth is attributable to improved traction in our Healthcare segment, which shows a growth of 181% year-on-year to ₹77 crores."

He further added, "We're on track with our guidance expecting health care business to contribute significantly to our revenue and profitability over the next couple of years, thereby enhancing the organizational value."

Conclusion

Shaily Engineering Plastics Limited's Q1 FY26 results demonstrate the company's strong growth trajectory, particularly in the healthcare segment. With ongoing expansions and a focus on GLP-1 pen devices, SEPL is well-positioned to capitalize on the growing demand in the pharmaceutical industry. Investors will be watching closely to see if the company can maintain this momentum in the coming quarters.