Recent Price Movement and Market Context
On 9 December 2025, Shankara Building Products touched an intraday low of Rs.109.65, representing a 2.88% decline during the trading session. This new low comes after the stock experienced a consecutive two-day fall, resulting in a cumulative return of -4.86% over this period. The stock’s performance today lagged behind its sector by 1.44%, signalling relative weakness within its industry group.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning indicates sustained downward pressure over multiple time horizons, reflecting a lack of short- and long-term price support.
Meanwhile, the broader market environment presents a contrasting picture. The Sensex opened lower at 84,742.87, down 359.82 points or 0.42%, and was trading near this level at 84,761.79 by midday. The benchmark index remains within 1.65% of its 52-week high of 86,159.02 and is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average. Small-cap stocks led the market gains, with the BSE Small Cap index rising by 0.32% on the day.
Long-Term Performance and Comparative Analysis
Over the past year, Shankara Building Products has recorded a total return of -29.22%, a stark contrast to the Sensex’s 3.99% gain during the same period. This underperformance extends beyond the last twelve months, as the stock has consistently lagged behind the BSE500 index in each of the previous three annual periods. The 52-week high for the stock was Rs.287.99, highlighting the extent of the decline from its peak.
Such sustained underperformance suggests structural challenges in the company’s growth trajectory relative to its peers and the broader market.
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Financial Results and Growth Trends
Shankara Building Products’ recent quarterly results reveal a decline in key financial metrics. Net sales for the quarter stood at Rs.279.91 crore, reflecting a contraction of 17.01% compared to the previous period. Operating profit (PBDIT) registered a negative figure of Rs.-0.58 crore, marking the lowest level recorded in recent quarters. The company’s profit after tax (PAT) was Rs.-5.16 crore, representing a fall of 700.0% year-on-year.
These figures follow two consecutive quarters of negative results, underscoring a challenging phase for the company’s profitability and revenue generation. Over the last five years, net sales have grown at an annual rate of 10.82%, while operating profit has expanded at 14.50% annually. However, the recent quarterly data indicates a reversal in this growth trend.
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 manageable level of leverage and an ability to service debt obligations effectively. The company’s return on capital employed (ROCE) stands at 17.1%, which is considered attractive within its sector.
The enterprise value to capital employed ratio is 0.7, indicating that the stock is trading at a discount relative to its peers’ historical valuations. This valuation metric reflects the market’s current assessment of the company’s capital efficiency and growth prospects.
Institutional investors hold a significant stake in the company, accounting for 22.45% of share ownership. This holding has increased by 1.83% over the previous quarter, signalling continued institutional interest despite the stock’s recent performance.
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Summary of Key Performance Indicators
The stock’s 52-week low of Rs.109.65 contrasts sharply with its 52-week high of Rs.287.99, illustrating a significant price contraction. Over the last year, the stock’s return of -29.22% stands in contrast to the Sensex’s positive 3.99% return, highlighting the stock’s relative underperformance.
Quarterly financials show a decline in net sales by 17.01%, operating profit turning negative at Rs.-0.58 crore, and a substantial fall in PAT to Rs.-5.16 crore. These results follow two quarters of negative earnings, contributing to the stock’s downward trajectory.
On the valuation front, the company’s low Debt to EBITDA ratio of 0.79 times and ROCE of 17.1% indicate financial stability and capital efficiency. The enterprise value to capital employed ratio of 0.7 suggests the stock is priced below peer averages. Institutional holdings remain robust at 22.45%, with a recent increase in stake.
Overall, Shankara Building Products is navigating a period of price weakness and financial contraction, reflected in its new 52-week low and recent quarterly results.
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