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UBS Predicts 43% Surge for Shaily Engineering Shares on Sandoz Deal
- •Shaily Engineering Plastics shares jumped 8% after UBS maintained a "Buy" rating with a target price of ₹4,500, implying a 43% upside.
- •UBS's positive outlook stems from Sandoz receiving approval to launch generic semaglutide in Canada, which will be supplied in a pen format.
- •Shaily Engineering Plastics is expected to benefit significantly due to its dominant share in the Canadian pen market, potentially exceeding its FY27 guidance.
- •UBS estimates Shaily could supply 40 million pens, surpassing the company's FY27 guidance of 36 million units.
- •Despite a promoter selling 4 lakh shares in June, analyst consensus shows five out of seven analysts recommend a "buy" for Shaily Engineering Plastics.
Key Questions Answered
UBS maintained a "Buy" recommendation on Shaily Engineering Plastics with the highest target price among analysts at ₹4,500 per share, which implies an upside of about 43% from its previous closing price of ₹3,149.80.
UBS expects the company's growth trajectory to be supported by Sandoz receiving approval to launch generic semaglutide in Canada in a pen format, given Shaily Engineering's dominant share in the Canadian pen market. UBS estimates Shaily could supply around 40 million pens, surpassing its FY27 guidance of 36 million pens.
According to Bloomberg analyst data, five of seven analysts covering the stock have a "buy" rating, two have a "hold" rating, and there are no "sell" ratings, with a 12-month consensus target price standing at ₹3,875.86.
