UBS has initiated coverage on Shaily Engineering Plastics with a buy rating and a target price of ₹4,000, citing multiple growth drivers and the potential for positive surprises across business segments. The brokerage highlighted that Shaily is on strong operational footing for the upcoming generic semaglutide launch — a key long-term opportunity that could materially boost its pharma and healthcare vertical. UBS expects the company’s consumer and industrials businesses to continue growing steadily, supported by diversified client relationships and expanding product pipelines.
A significant optionality, UBS said, lies in Shaily’s ongoing efforts to secure a large customer in the consumer electronics and semiconductor space. The brokerage noted that winning this mandate would meaningfully enhance Shaily’s addressable market and provide a structural uplift to volumes and margins. It also pointed out that consumer electronics could become a multi-year growth engine if the partnership materialises.
UBS forecasts a sharp 75% EPS CAGR over FY25–28, supported by new product opportunities, capacity expansions and the scaling up of high-value segments. The brokerage believes Shaily’s mix shift toward more technical and specialty components positions it well to deliver outsized earnings growth versus peers.
Disclaimer: The views and recommendations above are those of UBS. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
