Buy This Plastic Product Industrial Stock For 17% Returns, Revenue Grew 39% YoY: ICICI Direct

ICICI Direct, the brokerage firm, has given a 'buy' call to Shaily Engineering Plastic Ltd for 17% returns. The company's export revenue contributed ~76% to the top line in FY22 while the rest came from the domestic business. The company's biggest clients include a Swedish furnishing major, which contributes ~55% to the topline.

Stock Overview: CMP, Target Price, Return, 52 weeks High & Low

Today, 03 June 2022, the Shaily Engineering Plastic Ltd opened at Rs 1,977.25. The current market price (CMP) of the stock is Rs 1,903. The brokerage has put a target price of Rs 2,215/share, taking the target price and the CMP, the stock could gain 17% returns in 12 Months. Shaily Engineering Plastic Ltd's Share price in the last 1 year has fallen close to 19%. Last month, it has touched the 52 week low of Rs 1,541.25 on 12 May 2022. Whereas, the 52 weeks high of Rs 2,390 on 06 April 2022.

 

Q4FY22 Result

Execution of new orders drives topline growth in Q4; price hike delay takes toll on EBITDA margin. Revenue grew ~39% YoY to Rs 153 crore led by execution of orders in the healthcare and toy segment. Volumes were up ~25% YoY. The EBITDA margin declined 566 bps YoY to 12.3%, mainly due to a delay in passing on of high raw material costs. PAT declined 24% YoY to ~ Rs 7 crore, tracking lower EBITDA in Q4.

Buy for a target price of Rs 2,215

"Shaily Engineering's share price has grown by ~3.3x over five years (from ~Rs 522 in February 2017 to ~Rs 1751 level in February 2021). We maintain our BUY rating on the stock. We value Shaily at Rs 2215 i.e. 25x on FY24E EPS," the brokerage has said.

Shaily Engineering Plastics Ltd.

Shaily Engineering Plastics Ltd, established in 1987, is into manufacturing high precision injection moulded plastic components and finished goods in home furnishing, healthcare, toys, personal care and automotive components. Shaily Engineering Plastics Ltd facilities have grown significantly from two moulding machines to more than 120 machines. The company can be found across the globe in products as diverse as medical devices, homewares and automotive components.

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decisions.