Shankara Building Products Achieves Quality Grade Upgrade Amid Strong Financial Performance

Shankara Building Products has recently undergone an evaluation revision, reflecting its strong performance metrics within the garments and apparels industry. The company has demonstrated robust sales growth over the past five years, achieving a rate of 20.85%. Additionally, its EBIT growth during the same period stands at an impressive 26.73%, indicating effective operational management.
Financial stability is further highlighted by a favorable EBIT to interest ratio of 3.38, alongside a manageable debt to EBITDA ratio of 1.31 and a net debt to equity ratio of 0.16. These figures suggest that Shankara Building Products maintains a solid balance sheet, which is crucial for sustaining growth.

In terms of market positioning, the company boasts a sales to capital employed ratio of 4.54, reflecting efficient use of capital. The tax ratio is recorded at 24.74%, with a modest dividend payout ratio of 9.40%. Notably, the company has no pledged shares, indicating strong ownership confidence.

When compared to its peers, Shankara Building Products stands out with a higher quality assessment, particularly against companies like Ramco Industries and Indian Hume Pipe, which exhibit varying levels of performance metrics. This evaluation adjustment underscores Shankara's competitive edge in the market.