Stock Price Movement and Market Context
On 30 Jan 2026, Shankara Building Products Ltd opened with a gap down of -2.48%, hitting an intraday low of Rs.100.15, which represents its lowest price point in the last 52 weeks. Despite this, the stock managed to post a modest gain of 1.51% by the close, outperforming its sector by 1.02%. The stock has recorded consecutive gains over the last two sessions, delivering a cumulative return of 1.81% during this period.
From a technical perspective, the share price currently trades above its 5-day moving average but remains below the 20-day, 50-day, 100-day, and 200-day moving averages, indicating a prevailing downward trend in the medium to long term. This technical positioning reflects the broader market sentiment and the stock’s recent performance trajectory.
The broader market context shows the Sensex opened lower at 81,947.31, down by 619.06 points (-0.75%), and was trading at 82,051.09 (-0.62%) during the day. The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, signalling mixed market momentum.
Financial Performance and Growth Trends
Shankara Building Products Ltd’s financial results have been under pressure, contributing to the stock’s decline. The company reported a sharp fall in net sales by -17.01% in the quarter ended September 2025, with net sales amounting to Rs.279.91 crores. This decline in revenue was accompanied by a significant contraction in profitability, with the Profit After Tax (PAT) plunging to a loss of Rs.-5.16 crores, representing a staggering fall of -700.0% compared to the previous period.
Operating profit also deteriorated, with PBDIT registering a loss of Rs.-0.58 crores, marking the lowest level recorded in recent quarters. Over the last five years, the company’s net sales have grown at an annualised rate of 10.82%, while operating profit has expanded at 14.50%. However, the recent quarterly results indicate a reversal of these growth trends, raising concerns about the company’s near-term financial health.
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Institutional Investor Participation and Market Sentiment
Institutional investors have reduced their holdings in Shankara Building Products Ltd by -3.64% over the previous quarter, now collectively holding 18.81% of the company’s shares. This decline in institutional participation is notable given their typically greater resources and analytical capabilities compared to retail investors, and may reflect concerns about the company’s recent performance and outlook.
Over the last three years, the stock has consistently underperformed its benchmark indices. In the past year alone, Shankara Building Products Ltd has delivered a negative return of -26.04%, compared to a positive 6.88% return by the Sensex. The stock has also underperformed the BSE500 index in each of the last three annual periods, highlighting persistent challenges in generating shareholder value relative to the broader market.
Valuation and Financial Ratios
Despite the recent price decline, the company maintains a strong ability to service its debt, with a low Debt to EBITDA ratio of 0.79 times. Return on Capital Employed (ROCE) stands at a robust 17.1%, indicating efficient use of capital in generating profits. The enterprise value to capital employed ratio is 0.6, suggesting the stock is trading at a discount relative to its peers’ historical valuations.
However, the company’s profitability has contracted significantly, with profits falling by -33.8% over the past year. The Price/Earnings to Growth (PEG) ratio is currently zero, reflecting the absence of earnings growth in the recent period. These metrics underscore the valuation challenges faced by the stock amid weakening financial performance.
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Long-Term Performance and Industry Position
Shankara Building Products Ltd operates within the Building Products sector, which has experienced varied performance trends over the past year. The company’s 52-week high was Rs.287.99, indicating a substantial decline of approximately 65% to the current 52-week low of Rs.100.15. This steep fall reflects both company-specific factors and broader sectoral pressures.
The company’s Mojo Score currently stands at 29.0, with a Mojo Grade of Strong Sell, downgraded from Sell on 28 Jan 2026. The Market Cap Grade is rated 3, indicating a mid-tier market capitalisation relative to peers. These ratings encapsulate the company’s recent financial and market performance, signalling caution in the current environment.
While the stock has shown some short-term resilience with gains over the last two days, the overall trend remains subdued. The gap down opening and trading below key moving averages highlight ongoing challenges in regaining investor confidence and market momentum.
Summary of Key Metrics
To summarise, Shankara Building Products Ltd’s key recent metrics include:
- New 52-week low price: Rs.100.15
- 1-year stock return: -26.04%
- Sensex 1-year return: +6.88%
- Quarterly net sales decline: -17.01% to Rs.279.91 crores
- Quarterly PAT loss: Rs.-5.16 crores, down -700.0%
- Debt to EBITDA ratio: 0.79 times
- ROCE: 17.1%
- Mojo Score: 29.0 (Strong Sell)
The stock’s recent price action and financial results reflect a period of subdued performance and valuation pressures. The decline to a 52-week low underscores the challenges faced by Shankara Building Products Ltd in the current market environment.
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