Shaily Engineer. (SHAILY)

FairStock Score: 22/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Shaily Engineer is a fascinating case: a company doing many things right, but priced as if it can never stumble. Latest quarter sales of ₹236 Cr and net profit of ₹36 Cr show strong momentum. Sales are up 26.9% and profits have jumped 96.47%. ROE of 31.66% is excellent, and with debt/equity of only 0.30, the balance sheet is not a worry. The Piotroski score of 7/9 reinforces that the company is financially sound. But as Graham said, price is what you pay, quality is what you get. At ₹2,186.20, the market cap is ₹8,962 Cr — about 63 times earnings and 22.5 times book value. Book value stands at ₹97.24 per share. For an industrial plastic products company, this valuation demands a durable, wide moat. I don't see that moat in these numbers. ROCE is 16.97% — respectable, but not the kind of exceptional return that would justify a premium this rich. The stock is 39% below its 52-week high of ₹3,615.20, and the FairStock Score of 30/100 warns of risk. A PEG of 1.02 in theory says growth is fairly priced, but that assumes 96% profit growth continues. That is not a reasonable base case. You also earn only 0.10% dividend yield while waiting. I would want a much lower price to provide a margin of safety. Shaily is a fast grower, but a value investor must resist paying growth-stock prices for cyclical or competitive industries. Let the market come to you.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer