In my judgement yes its fine, just a bit crudely done. Here is my one for comparison.
Looks okay to me.
I think your example was made by M. & Co. rather than M.E.Co, not that it really matters.
I always wondered what year this style of shell dressing bag was introduced since I had never seen an example with a date earlier than 1942. Then I came across the following pictures on a militaria site, which show that they were around as early as 1939.