Business Overview
Shaily Engineering Plastics Limited is Plastics sector Company. It is one of the leading Plastic Components exporter of India. It is the only licensed manufacturer of Torlon in India.
It manufactures both commodity polymers and high and ultra high performance polymers. The manufacturing sites are located in Baroda city of Gujarat.
The products created by this Company find usage in four key industries listed below. These four key industries form business units of the Company.
- Healthcare
- Clients are Sanofi, Lupin, Natco and Glenmark
- Consumer
- Kitchen and Cooking Devices, Children’s toys
- Personal care
- Gillette, Unilever and Himalaya
- Automotive and Engineering plastics
- ABB, Honeywell, Siemens and Haier
So the Company has marquee client names in each of the business units catered by Company. The capabilities of the Company are listed below
- Polymers – PP, PE, GPPS, HIPS, ABS, SAN, SMMA, TPE, PC, PPS, PPO, POM, PA6, 66, 10, 12, PBT, PET, PEI, PES, LPC, PEEK, PAI
- Injection Moulding
- Automation
- Tooling
- New Product Development
- Secondary Operations
- Ultrasonic Welding
- Robotic hot stamping
- Pad printing
- Vacuum Metalising
- Painting
- Assembling
- Laser marking
Stock Performance
Above is long term price performance chart of the Stock. The Company did not perform well from year 2006 to year 2015. In fact after year 2011 it corrected way too much. It has turned fortunes after year 2015 and has become multi bagger for investor.
Though it has corrected more than 50% in last couple of years. But if you see overall return in this long term chart then it has given more than 20 times return. The dividend yield is also impressive at more than 1%.
My Opinion
Shaily Engineering and Plastics is engaged in manufacture of products which are used in wide range of industries. So it is not impacted by slow down in one particular industry. It has also divided operations based on products.
Having said that there are many Plastics Company creating products to cater these industries. There is stiff competition in this area and technological advancements require companies to adapt with time.
It has some good clients which will make the expansion task easier. However for future growth it has to focus on export and catering different segments equally distributing the revenue across them.
I have kept it in my watchlist but the sector is too much competitive to give a comfort.