Why FIIs are steadily Increasing Their Stake in This
Foreign Institutional Investors have been steadily increasing their stake in this plastic manufacturing stock, signalling strong confidence in the company’s long-term growth potential.
Their continued buying interest usually reflects improving fundamentals, stable demand visibility, and a belief that the company is well-positioned to benefit from industry tailwinds. Read the article below to understand why FIIs are showing growing conviction in this stock.
Shaily Engineering Plastics Ltd, with a market capitalization of Rs. 11,630.77 crore, closed at Rs. 2,530.90 on Tuesday, up by 3.39 percent from its previous day’s close price of Rs. 2,448 per equity share.
As of September 2025, the Shaily Engineering Plastics Limited’s shareholding pattern shows that promoters hold 43.72 percent, FIIs hold 11.3 percent, DIIs hold 13.71 percent, and public shareholders hold 31.26 percent.
Over the past one year, FIIs have been consistently increasing their stake in the company, rising sharply from 3.11 percent in Q2 FY25 to 11.3 percent in Q2 FY26, reflecting strong and growing institutional confidence.
Financial Outlook
The company reported revenue of Rs. 257 crore in Q2 FY26, reflecting a 33.9 percent increase year-on-year compared to Rs. 192 crore in Q2 FY25 and a 4 percent increase quarter-on-quarter from Rs. 247 crore in Q1 FY26. EBITDA also showed strong performance at Rs. 79 crore, which represents a 97.5 percent jump year-on-year from Rs. 40 crore and a 16.2 percent improvement quarter-on-quarter from Rs. 68 crore.
Profit after tax for Q2 FY26 stood at Rs. 51 crore, marking a 131.8 percent rise year-on-year from Rs. 22 crore and a 24.4 percent rise quarter-on-quarter from Rs. 41 crore. Overall, the company delivered robust growth across revenue, operating earnings, and profitability on both yearly and sequential bases.
Over the past three years, the company has demonstrated strong growth, achieving a revenue CAGR of 11 percent, a robust profit CAGR of 38 percent, and an impressive stock price CAGR of 96 percent, reflecting both its operational performance and market confidence.
A return on equity (ROE) of about 18.5 percent, a return on capital employed (ROCE) of about 19.5 percent and debt to equity ratio of 0.30 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 79.2x which is higher as compared to its industry P/E at 21.8x.
Healthcare Segment: The Growth Engine
Shaily Engineering Plastics Limited operates across three major business segments; healthcare, consumer, and industrial. Its healthcare portfolio includes platform devices, drug delivery solutions such as pens and auto-injectors, and pharmaceutical packaging. This segment has emerged as the primary driver of the company’s growth, supported by strong demand for GLP-1 medications.
The company runs over 200 injection moulding machines ranging from 35 tons to 1,000 tons across seven units in Gujarat in which six are dedicated to plastics and one for steel furniture. This extensive manufacturing base enables Shaily to cater to diverse industries, including healthcare, consumer goods, and industrial applications.
Shaily is strategically positioned to benefit from the rising demand for GLP-1 (glucagon-like peptide-1) medications, providing delivery devices and components for these formulations. In FY25, the healthcare segment accounted for 21 percent of revenues, but it is expected to contribute approximately half of total revenues within the next three years.
The management targets a compound annual growth rate (CAGR) of 30–35 percent for the healthcare segment over the next three to five years. Consolidated revenue at the company level is projected to grow by more than 25 percent annually in the coming years, largely driven by GLP-1 pens, with commercial supplies scheduled to commence in FY26.
Capacity Expansion to Meet Rising Demand
To support the growing market for GLP-1 medications, Shaily plans to expand production capacity over the next 12–18 months, targeting 70–75 million pens by early FY27. Approximately 60 percent of this capacity is already booked through customer commitments, and the company anticipates full utilisation by FY28. The bulk of revenues from these products is expected to accrue in the second half of FY26.
Debt Reduction
The company has made significant progress in reducing its long-term debt, bringing it down from Rs. 102 crore in March 2022 to Rs. 33 crore in September 2025. This substantial reduction reflects the company’s strong focus on financial discipline, improving its balance sheet, and enhancing overall fiscal stability.
About the Company
Shaily Engineering Plastics Limited, founded in 1980 and based in Vadodara, India, manufactures and sells precision injection-moulded plastic products. Its offerings include pharmaceutical devices like inhalers, insulin pens, auto-injectors, and specialty packaging, along with contract manufacturing services. The company also produces kitchen and storage products, sheet steel furniture, and plastic components for lighting, appliances, automotive, and personal care products such as razors and pumps. Shaily exports its products to around 40 countries.
Ace Investor Holdings
Ashish Kacholia holds 5.21 percent stake in the company acquiring around 23.94 lakh shares of the company. In December 2015, the ace investor made a fresh investment in the company, acquiring a 12.02 percent stake. Overall, Kacholia holds 48 stocks, with a total net worth of over Rs. 2,782.2 crore.
Conclusion
Shaily Engineering Plastics is becoming a key player in pharmaceutical devices, supported by its strong manufacturing and growing demand for GLP-1 medications. With plans to expand capacity and grow its healthcare business, the company is set for steady revenue growth. Institutional investors are already noticing this potential and are increasing their stakes in the stock, showing confidence in its future.
Written by Akshay Sanghavi
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