Shaily Engineering Plastics: Strong Financial Performance and Bullish Trend Attract Investors

Shaily Engineering Plastics, a midcap company in the plastic products industry, has recently caught the attention of investors with its positive financial results and bullish technical trend. MarketsMOJO has upgraded its stock call to 'Buy' on November 6, 2024.
The company has shown a growth in net profit of 25.9% and has declared positive results for the last four consecutive quarters. Its operating profit to interest ratio is the highest at 8.89 times and its return on capital employed (ROCE) is also the highest at 15.93%. In terms of net sales, the company has achieved the highest at Rs 192.00 crore.

The stock is currently in a bullish range and its technical trend has improved from mildly bullish on November 6, 2024. Multiple factors such as MACD, Bollinger Band, KST, and DOW are all indicating a bullish trend for the stock.

Institutional investors have also shown an increasing interest in the company, with a 3.93% increase in their stake in the previous quarter. They hold a collective 15.46% of the company, indicating their confidence in its fundamentals.

Shaily Engineering Plastics has also outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, with a return of 234.81% in the last 1 year alone.

However, there are some risks associated with the company. Its long-term growth has been poor, with net sales growing at an annual rate of 4.69% and operating profit at 6.77% over the last 5 years. Additionally, with a ROCE of 15.6, the company has a very expensive valuation with an 8.3 enterprise value to capital employed. The stock is currently trading at a discount compared to its average historical valuations. While it has generated a return of 234.81% in the past year, its profits have only risen by 87.5%, resulting in a PEG ratio of 0.8.

Overall, Shaily Engineering Plastics has shown strong financial performance and a bullish trend, making it a promising investment option. However, investors should also consider the risks associated with the company before making any investment decisions.