Shaily Engineering crashes 13% on Dr. Reddy's delay news
Shaily Engineering's stock dropped nearly 13% on Thursday after a delay in Canadian approval for a key drug from one of its top clients, Dr. Reddy's Laboratories.
The news also sent Dr. Reddy's shares down 5%.
Shaily's big healthcare bet
Shaily has been betting big on healthcare, with that segment now making up 31% of its revenue—the contribution of the healthcare segment to the overall revenue mix has doubled to 31%—thanks to major investments in production for Semaglutide pens (used in diabetes care).
They've poured ₹125 crore into boosting capacity by 25 million pens, with the expansion wrapping up soon.
Stock up over 65% in 2025
Even with this week's dip, Shaily's stock is up over 65% in 2025 as investors cheer its growth plans and strong demand.
But high valuations and heavy reliance on just a few clients mean any hiccup—like delays from partners—can really shake things up.