Shaily Engineer. (SHAILY)
Fast GrowerFairStock Score: 22/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹3,365 |
| Market Cap | ₹15,477.4 Cr |
| P/E Ratio | 87.72 |
| ROCE | 16.97% |
| ROE | 31.66% |
| Dividend Yield | 0.09% |
| Profit Growth | 16.7% |
| Debt/Equity | 0.25 |
| Sales Growth | 13.8% |
| Promoter Holding | 43.4% |
| 52-Week Range | ₹1,770.9 — ₹3,615.2 |
| Sector | Industrial Products |
| Book Value | ₹155.95 |
Strengths
- Excellent profitability with ROE of 31.66% and latest quarter net profit of ₹36 Cr on sales of ₹236 Cr
- Strong growth trajectory: sales up 26.90% and profit up 96.47%
- Conservative balance sheet with debt/equity of only 0.30
- Healthy Piotroski F-Score of 7/9 indicates solid financial fundamentals
- Promoter holding of 43.40% provides reasonable ownership alignment
Concerns
- Extremely high valuation: P/E of 63.04 and P/B of 22.48 leave no room for error
- FairStock Score of 30/100 flags the stock as risky
- Stock is 39% below its 52-week high, showing bearish price momentum
- Negligible dividend yield of 0.10% means investors get no income while paying a rich price
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer