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Shankara Building Products Ltd. (IN:SHANKARA)
:SHANKARA
India Market
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Shankara Building Products Ltd. (SHANKARA) AI Stock Analysis

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IN:SHANKARA

Shankara Building Products Ltd.

(SHANKARA)

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Underperform 40 (OpenAI - 5.2)
Rating:40Underperform
Price Target:
₹118.00
▼(-7.67% Downside)
Action:Downgraded
Date:05/08/26
The score is primarily held down by the sharp deterioration in financial performance (major revenue decline, margin compression, and deeply negative operating/free cash flow) alongside rising leverage and weaker returns. Technicals add moderate pressure with the price below the 20-day average and subdued momentum, while valuation is also a headwind due to a high P/E despite a modest dividend yield.
Positive Factors
Diversified retail and distribution model
Shankara's core model combines retail stores and B2B distribution across many building categories (steel, cement, paints, tiles, plumbing, electrical). This breadth reduces reliance on any single commodity, supports cross-sell, and preserves durable revenue channels tied to construction activity and housing demand.
Negative Factors
Sharp revenue contraction
A near-73% revenue collapse materially erodes scale advantages, weakens bargaining power with suppliers, and impairs fixed-cost absorption for stores and distribution. Such a structural decline can persist across quarters and requires sustained demand recovery or strategic reengineering to restore prior economics.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified retail and distribution model
Shankara's core model combines retail stores and B2B distribution across many building categories (steel, cement, paints, tiles, plumbing, electrical). This breadth reduces reliance on any single commodity, supports cross-sell, and preserves durable revenue channels tied to construction activity and housing demand.
Read all positive factors

Shankara Building Products Ltd. (SHANKARA) vs. iShares MSCI India ETF (INDA)

Shankara Building Products Ltd. Business Overview & Revenue Model

Company Description
Shankara Building Products Limited operates as a retailer of home improvement and building products in India. It operates through Retail, Channel, and Enterprise segments. The company offers structural steel products, cement, TMT bars, hollow bloc...
How the Company Makes Money
SHANKARA makes money primarily by selling building and home-improvement materials to end customers (retail) and to trade/professional customers such as contractors, builders, and fabricators (distribution/B2B). Its core revenue stream is the resal...

Shankara Building Products Ltd. Financial Statement Overview

Summary
Financials weakened materially in the latest annual period: revenue fell ~72.7% (13.64B vs 56.97B), margins compressed (gross ~3.8% vs ~5.6%; net ~0.3% vs ~1.4%), and cash generation turned sharply negative (operating cash flow -1.14B; free cash flow -1.79B). Leverage is still manageable (debt-to-equity ~0.43) but rose notably as equity declined and debt increased, with ROE down to ~0.9%.
Income Statement
34
Negative
Balance Sheet
56
Neutral
Cash Flow
22
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue50.00B13.64B56.97B48.28B40.30B24.09B
Gross Profit2.82B523.00M3.18B2.61B2.24B1.59B
EBITDA1.51B234.80M1.69B1.52B1.25B876.50M
Net Income733.80M38.40M774.00M811.30M630.50M343.20M
Balance Sheet
Total Assets6.69B7.57B18.02B15.86B12.92B10.41B
Cash, Cash Equivalents and Short-Term Investments95.90M76.20M298.30M344.00M58.70M24.80M
Total Debt636.30M1.92B1.04B866.50M878.40M1.33B
Total Liabilities2.31B3.09B9.34B7.88B6.49B4.85B
Stockholders Equity4.39B4.47B8.68B7.98B6.43B5.56B
Cash Flow
Free Cash Flow-381.00M-1.79B375.70M-204.60M472.10M497.10M
Operating Cash Flow-102.90M-1.14B636.00M97.20M919.60M696.40M
Investing Cash Flow-282.10M-636.30M-263.90M-272.00M-452.00M-183.80M
Financing Cash Flow100.00K1.38B-423.70M399.60M-433.70M-596.80M

Shankara Building Products Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price127.80
Price Trends
50DMA
115.40
Positive
100DMA
111.36
Positive
200DMA
149.25
Negative
Market Momentum
MACD
1.01
Negative
RSI
58.59
Neutral
STOCH
79.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHANKARA, the sentiment is Positive. The current price of 127.8 is above the 20-day moving average (MA) of 118.03, above the 50-day MA of 115.40, and below the 200-day MA of 149.25, indicating a neutral trend. The MACD of 1.01 indicates Negative momentum. The RSI at 58.59 is Neutral, neither overbought nor oversold. The STOCH value of 79.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SHANKARA.

Shankara Building Products Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
₹4.58B29.370.42%-4.28%-79.74%
57
Neutral
₹1.66B30.800.55%6.69%-52.22%
55
Neutral
$13.29B17.4210.03%0.93%7.13%-12.93%
42
Neutral
₹1.39B-2.67-28.87%
41
Neutral
₹3.28B-1.59-16.64%2.51%
40
Underperform
₹3.00B9.160.68%-52.87%-53.72%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SHANKARA
Shankara Building Products Ltd.
124.00
-75.42
-37.82%
IN:FRETAIL
Future Retail Ltd.
IN:PRAXIS
Praxis Home Retail Ltd.
7.38
-6.78
-47.88%
IN:RUSHIL
Rushil Decor Ltd.
15.61
-10.77
-40.83%
IN:SPENCERS
Spencer's Retail Ltd.
37.45
-28.50
-43.21%
IN:SUPERHOUSE
Superhouse Limited
155.00
-12.37
-7.39%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 08, 2026