Shaily Engineering Plastics has emerged as a multibagger stock with impressive returns of 910% over four years and 15,400% over 11 years, driven by strong growth in its healthcare segment.
Shaily Engineering Plastics, a leading Indian exporter of high-precision engineered plastic products and components, has emerged as a major multibagger stock, delivering impressive returns of 910% over the past four years and a staggering 15,400% over the last 11 years. The company, renowned for its customized plastic components, has grown substantially, particularly in the healthcare segment, making it a standout performer on Dalal Street.
Shaily Engineering, headquartered in India, is a key player in the manufacturing and sale of precision-molded components made from plastic and other materials. The company’s diverse customer base spans across various industries, including healthcare, automotive, consumer goods, personal care, appliances, and lighting. Some of the world’s biggest companies, such as Unilever, Gillette, P&G, Sanofi, GE, and Garrett, rely on Shaily’s products, backed by long-term partnerships.
Over the past four years, the small-cap stock has seen consistent growth, with its shares appreciating by 910%, reaching ₹1,513 per share. The company’s stock also delivered exceptional returns in 2024, gaining 331.77%, marking its most significant yearly gain since 2010. Over an 11-year period, the stock rose by 15,400%, solidifying its position as a wealth creator for shareholders.
Strategic Focus on Healthcare
The company has placed a strong focus on expanding its healthcare segment, which is now its second-largest and fastest-growing business. Shaily Engineering generates 85% of its revenue from the consumer segment, which includes home furnishing, personal care, and toys. The remaining 15% comes from the healthcare and industrial sectors, with a particular emphasis on medical devices.
The demand for plastic products in healthcare is rising rapidly, especially with the COVID-19 pandemic highlighting the critical role of plastics in medical applications such as PPE, diagnostic kits, and vaccine storage. Shaily Engineering has invested heavily in this segment, with the aim of making its medical devices business account for 25% of its revenue within the next three years.
Shaily’s healthcare offerings include the contract manufacturing of medical devices for global pharmaceutical companies, with a proprietary portfolio of devices such as pen injectors, auto-injectors, wearable injectors, and specialty devices. The company has seen substantial growth in this area, with revenue from the healthcare segment nearly doubling from ₹58 crore in FY23 to ₹107 crore in FY24.
Shaily’s focus on innovation and quality has helped it build a strong presence in the medical devices market, catering to major pharmaceutical companies such as Sanofi, Zydus, Glenmark, and Dr. Reddy’s. With continued investments in healthcare, the company is well-positioned to maintain its upward trajectory.
