Recent Price Movement and Market Context
On 18 Dec 2025, Shankara Building Products recorded an intraday low of Rs.106.7, representing a fall of 2.38% on the day. This decline extends a four-day losing streak during which the stock has returned -5.91%. The stock’s current price level is substantially below its 52-week high of Rs.287.99, underscoring the extent of the downward movement over the past year.
In comparison, the Sensex opened flat but moved into negative territory, trading at 84,392.45 points, down 0.2% and approximately 2.09% below its own 52-week high of 86,159.02. The benchmark index continues to trade above its 50-day moving average, which itself remains above the 200-day moving average, signalling a generally bullish trend for the broader market. However, Shankara Building Products is trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating persistent weakness in the stock’s price momentum.
Financial Performance and Growth Trends
Over the last five years, Shankara Building Products has shown a net sales growth at an annual rate of 10.82%, while operating profit has moved at a rate of 14.50%. Despite these figures, the company’s recent quarterly results have reflected a contraction in key metrics. Net sales for the quarter stood at Rs.279.91 crore, marking a decline of 17.01% compared to previous periods. Operating profit before depreciation, interest, and taxes (PBDIT) registered a negative Rs.0.58 crore, while the profit after tax (PAT) was reported at a loss of Rs.5.16 crore, a fall of 700% from the corresponding quarter.
This quarterly performance represents the lowest levels recorded in recent periods and has contributed to the stock’s downward trajectory. The company’s returns over the past year have been negative at -36.01%, contrasting with the Sensex’s positive return of 5.27% over the same timeframe. Furthermore, Shankara Building Products has underperformed the BSE500 index in each of the last three annual periods, highlighting a consistent trend of relative underperformance within its sector and the broader market.
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Valuation and Debt Metrics
Despite the recent price decline, Shankara Building Products maintains a relatively low debt burden, with a Debt to EBITDA ratio of 0.79 times. This suggests a capacity to service debt obligations without excessive financial strain. The company’s return on capital employed (ROCE) stands at 17.1%, which is considered attractive within the building products sector. Additionally, the enterprise value to capital employed ratio is 0.6, indicating a valuation level that is below the average historical valuations of its peers.
However, the company’s price-to-earnings-growth (PEG) ratio is reported as zero, reflecting the current negative earnings growth trend. Over the past year, profits have declined by 33.8%, which has contributed to the stock’s subdued performance relative to sector benchmarks.
Shareholding and Institutional Interest
Institutional investors hold a significant stake in Shankara Building Products, accounting for 22.45% of the shareholding. This group has increased its holdings by 1.83% over the previous quarter, indicating a degree of confidence in the company’s fundamentals despite recent price movements. Institutional investors typically possess greater resources and analytical capabilities to assess company performance, which may influence their investment decisions.
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Sector and Industry Overview
Shankara Building Products operates within the building products industry, a sector that has experienced varied performance across different companies. While the broader market indices such as the Sensex have maintained a generally positive trend, individual stocks within the sector have faced divergent outcomes. The company’s current valuation discount relative to peers may reflect sector-specific pressures as well as company-specific financial results.
The stock’s performance over the past year, with a return of -36.01%, contrasts with the Sensex’s positive 5.27% return, highlighting the challenges faced by Shankara Building Products in maintaining competitive growth and profitability.
Summary of Key Price and Performance Indicators
To summarise, Shankara Building Products’ stock price has reached Rs.106.7, its lowest level in 52 weeks, following a series of declines over the past four trading sessions. The stock’s position below all major moving averages signals continued downward momentum. Financial results for the recent quarter show contraction in net sales and profitability, contributing to the stock’s underperformance relative to the broader market and sector indices.
Despite these challenges, the company’s low debt ratio and attractive ROCE provide some context to its financial standing. Institutional investors maintain a notable stake, which has seen a modest increase in recent quarters.
Conclusion
Shankara Building Products’ fall to a 52-week low reflects a combination of subdued quarterly financial results and sustained price weakness over recent months. The stock’s performance remains below key technical levels and continues to trail broader market indices. Investors and market participants will likely continue to monitor the company’s financial disclosures and sector developments closely as the stock navigates this challenging phase.
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