BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Direct Report
Shaily Engineering Plastics Ltd. posted strong revenue growth, crossing pre-Covid-19 levels.
Strong topline growth in Q1 FY22 is attributable to ramp up of new products (toys, carbon steel products).
The plant utilisation was at 59% in Q1 FY22. The management expects a further increase in plant utilisation led by order execution in toy, healthcare and home furnishing segments.
Gross margin was down ~110 basis points YoY, mainly due to a delay in passing on of raw material prices.
However, Ebitda margins increased to ~16% in Q1 FY22 versus 7.3% in Q1 FY21.
Shaily Engineering Plastics' management has further guided at passing on of raw material price in coming quarters, which will help in a recovery in gross margins.
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