Up 7x in 3 years! UBS sees up to 60% upside in this Ashish Kacholia's multibagger stock;

UBS has initiated coverage of Shaily Engineering Plastics, a precision plastic engineering firm involved in healthcare, personal care, electronics, and industrial sectors. The stock is owned by ace Dalal Street investor Ashish Kacholia, which has already delivered multibagger returns to him.

"We believe the market is underestimating this opportunity and Shaily's capability." UBS said, "We expect increased traction, utilisation improvement in its consumer and industrial segments where it serves global companies like IKEA, GE Appliances, P&G. It could be beneficiary of a favourable India-US trade deal and tariff reduction. It is in the process of gaining one large customer in the consumer electronics and semiconductor space, which we think provides significant optionality."

UBS projects strong earnings growth for Shaily, stating, "We forecast a 75% EPS CAGR in FY25-28. Buy with price target of Rs4,000." The firm highlights Shaily's patented technology for fixed-dose and auto-injector pens as a key factor for the upcoming launch of generic GLP-1 therapies.

Shares of Shaily Engineering Plastics rose more than 2% to Rs 2,547.90 on Tuesday, commanding a total market capitalization of more than 11,600 crore. The stock had settled at Rs 2496.75 on Monday, while has remained flat in the last three months period.

Shares of Shaily Engineering Plastics have zoomed 137% from its 52-week low at Rs 1,073.90, hit a year ago, while it has gained nearly 75% in 2025 so far. The stock has zoomed nearly 6,300% from its March 2020 lows, while its surged nearly 700% in the last three year.

With the GLP-1 (semaglutide) patent set to expire in 2026 in India, Canada, and Brazil, UBS sees a considerable opportunity. "The GLP-1 (semaglutide) patent is to expire in 2026 in key markets, including India, Canada and Brazil." UBS estimates, "We believe these geographies have a total addressable market of 550-600m devices, or Rs80-85bn revenue, by 2030."

"Shaily has tied up with 23-24 global pharma companies for generic GLP-1, implying a 50-60% share in these three markets," it said, adding that entry barriers are high due to patented technology and regulatory requirements, making it difficult for pharma companies to change injector vendors. 

UBS highlights Shaily's relationships with firms like IKEA, Gillette, P&G, GE Appliances and Schaeffler for both domestic use and exports. Recent segment weakness is attributed to unfavourable tariffs compared to other emerging countries. UBS is optimistic that any positive trade deal with reduced tariffs would benefit India and Shaily. The firm forecasts an ~18% revenue CAGR in these segments in FY25-28 with improving margins and ROCE given unutilised capacity.

Seasoned Dalal Street investors Ashish Kacholia and his affiliate arm Suryavanshi Commotrade cumulatively owned 5.21% stake, or 23,93,680 equity shares in Shaily Engineering Plastics as of September 30, 2025. As of current prices, his stake is worth Rs 610 crore. He has been holding this stock for at least 10 years now.

Besides Kacholia, Mutual Funds own 11.87% stake in the company as of September 30, 2025, including Motilal Oswal Smallcap Funds (8.96%) and Bandhan Smallcap Fund (1.70%). Smallcap World Fund owned 5.48% stake in the company, while more than 28,500 retail investors owned 22.97% stake in it.

For valuation, UBS initiates coverage with a Buy and a price target of Rs 4,000, suggesting a 60% upside from its current prices. The report notes, "Our price target has 60% upside potential. We assign 45x PE on the FY27-28E EPS average."