Why is Shankara Building Products Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of -7.72% and Operating profit at -20.15% over the last 5 years
2
With a fall in Operating Profit of -62.2%, the company declared Very Negative results in Mar 26
- The company has declared negative results for the last 3 consecutive quarters
- The company has declared negative results in Sep 25 after 2 consecutive negative quarters
- NET SALES(Q) At Rs 340.50 cr has Fallen at -79.23%
- PBT LESS OI(Q) At Rs 7.26 cr has Fallen at -79.67%
- PAT(Q) At Rs 7.35 cr has Fallen at -74.2%
3
With ROCE of 2.4, it has a Very Attractive valuation with a 0.8 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -51.90%, its profits have fallen by -93.5%
4
Rising Promoter Confidence
- Promoters have increased their stake in the company by 0.94% over the previous quarter and currently hold 45.39% of the company
- Promoters increasing their stake is a sign of high confidence in the future of the business
How much should you hold?
- Overall Portfolio exposure to Shankara Buildin should be less than 10%
- Overall Portfolio exposure to Building Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Building Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Shankara Buildin for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Shankara Buildin
-51.9%
-1.07
48.45%
Sensex
-3.2%
-0.24
13.59%
Quality key factors
Factor
Value
Sales Growth (5y)
-7.72%
EBIT Growth (5y)
-20.15%
EBIT to Interest (avg)
2.98
Debt to EBITDA (avg)
1.63
Net Debt to Equity (avg)
0.41
Sales to Capital Employed (avg)
5.22
Tax Ratio
50.90%
Dividend Payout Ratio
189.45%
Pledged Shares
0
Institutional Holding
15.39%
ROCE (avg)
13.50%
ROE (avg)
8.48%
Valuation Key Factors 
Factor
Value
P/E Ratio
85
Industry P/E
13
Price to Book Value
0.78
EV to EBIT
34.94
EV to EBITDA
22.71
EV to Capital Employed
0.84
EV to Sales
0.39
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
2.42%
ROE (Latest)
0.91%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
Bullish
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Movement
4What is working for the Company
EPS(Q)
Highest at Rs 3.03
-27What is not working for the Company
NET SALES(Q)
At Rs 340.50 cr has Fallen at -79.23%
PBT LESS OI(Q)
At Rs 7.26 cr has Fallen at -79.67%
PAT(Q)
At Rs 7.35 cr has Fallen at -74.2%
ROCE(HY)
Lowest at 3.44%
DEBT-EQUITY RATIO(HY)
Highest at 0.43 times
Loading Valuation Snapshot...
Here's what is working for Shankara Buildin
Earnings per Share (EPS) - Quarterly
Highest at Rs 3.03
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Shankara Buildin
Net Sales - Quarterly
At Rs 340.50 cr has Fallen at -79.23%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 7.26 cr has Fallen at -79.67%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 7.35 cr has Fallen at -74.2%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.43 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Non Operating Income - Quarterly
Highest at Rs 3.40 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income






