Shankara Building Products Ltd. (SHANKARA) AI Stock Analysis

• Market Cap: ₹26.22B
• Dividend Yield: 0.28%
• Average Volume (3M): 19.39K
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.70
• Revenue Growth: 21.30%
• EPS Growth: 13.79%
• Country: IN
• Employees: 725
• Sector: Services
• Sector Strength: N/A
• Industry: Home Improvement
• EPS (TTM): 13.36
• Shares Outstanding: 24,249,327
• 10 Day Avg. Volume: 24,776
• 30 Day Avg. Volume: 19,392
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,249.00
• Price Target Upside: 14.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ₹1,249.00 ▲(14.77% Upside)

Shankara Building Products Ltd. demonstrates solid financial performance, with robust revenue growth and a healthy balance sheet. Technical indicators suggest continued bullish momentum, though the stock is in overbought territory. Valuation metrics indicate potential overvaluation, with a relatively high P/E ratio and low dividend yield.

Shankara Building Products Ltd. Business Overview & Revenue Model

Company Description

Shankara Building Products Ltd. (SHANKARA) is a prominent player in the Indian building materials sector. The company specializes in the distribution and retailing of a wide range of construction materials, including steel, cement, and other allied products. With a robust network of retail stores and a comprehensive supply chain, Shankara serves a diverse customer base, including homeowners, contractors, and builders, ensuring they have access to high-quality building supplies.

How the Company Makes Money

Shankara Building Products Ltd. generates revenue primarily through its extensive retail and distribution network. The company operates a chain of retail stores under the 'Shankara Buildpro' brand, which caters to both retail and wholesale customers. Revenue streams include the sale of steel, cement, sanitaryware, plumbing materials, electrical products, and other construction-related products. Significant partnerships with manufacturers and suppliers enable Shankara to offer a wide array of products, often at competitive prices, thus attracting a large customer base. Additionally, the company's effective supply chain management and strong distribution capabilities contribute to its earnings by optimizing inventory and reducing costs.

Shankara Building Products Ltd. Financial Statement Overview

Summary

Shankara Building Products Ltd. shows strong financial performance with substantial revenue growth and improved profitability. The balance sheet is healthy with low leverage, and cash flow metrics are trending positively. However, maintaining consistent free cash flow growth is crucial.

Income Statement

Shankara Building Products Ltd. has demonstrated strong revenue growth with a significant increase from ₹48.28 billion in 2024 to ₹56.97 billion in 2025, a growth rate of approximately 18%. The gross profit margin stands at 5.58% in 2025, showing improvement from previous years. The net profit margin is 1.36%, indicating profitability, yet there is room for enhancement. EBIT and EBITDA margins are 4.56% and 2.97% respectively, reflecting solid operational performance. Overall, the income statement indicates robust growth and profitability, albeit with some margin pressure.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.12 in 2025, signaling low financial leverage. The return on equity is 8.92%, suggesting efficient use of equity to generate profits. The equity ratio is 48.17%, indicating a strong equity base relative to total assets. The company's financial stability is further supported by a consistent increase in stockholders' equity over the years. However, minor fluctuations in total debt levels require monitoring.

Cash Flow

There is a positive trend in cash flow management with free cash flow improving to ₹375.7 million in 2025 from negative figures in 2024. The operating cash flow to net income ratio is 0.82, indicating a good conversion of income into cash flow. The free cash flow to net income ratio is 0.49, demonstrating effective cash generation relative to income. Although free cash flow growth was negative from 2024 to 2025, the overall cash flow position is strengthening.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	56.97B	56.97B	48.28B	40.30B	24.09B	20.32B
Gross Profit	2.78B	3.18B	2.61B	2.24B	1.59B	1.43B
EBITDA	1.71B	1.69B	1.52B	1.25B	876.50M	771.44M
Net Income	774.00M	774.00M	811.30M	630.50M	343.20M	138.50M
Balance Sheet
Total Assets	18.02B	18.02B	15.86B	12.92B	10.41B	9.26B
Cash, Cash Equivalents and Short-Term Investments	298.30M	298.30M	344.00M	58.70M	24.80M	109.04M
Total Debt	1.04B	1.04B	866.50M	878.40M	1.33B	1.69B
Total Liabilities	9.34B	9.34B	7.88B	6.49B	4.85B	4.04B
Stockholders Equity	8.68B	8.68B	7.98B	6.43B	5.56B	5.22B
Cash Flow
Free Cash Flow	0.00	375.70M	-204.60M	472.10M	497.10M	1.16B
Operating Cash Flow	0.00	636.00M	97.20M	919.60M	696.40M	1.33B
Investing Cash Flow	0.00	-263.90M	-272.00M	-452.00M	-183.80M	-81.17M
Financing Cash Flow	0.00	-423.70M	399.60M	-433.70M	-596.80M	-1.28B

Shankara Building Products Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1088.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1088.25 is above the 20-day moving average (MA) of 1085.59, above the 50-day MA of 1043.95, and above the 200-day MA of 729.12, indicating a bullish trend. The MACD of 23.34 indicates Positive momentum. The RSI at 52.44 is Neutral, neither overbought nor oversold. The STOCH value of 27.80 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHANKARA	71 Outperform	₹26.22B	27.97		0.28%	21.30%	13.79%
UNIPARTS	68 Neutral	₹17.64B	17.96		3.65%	-11.58%	-13.89%
SBCL	65 Neutral	₹28.93B	37.65		0.44%	2.21%	1.54%
CAPACITE	63 Neutral	₹23.94B	12.27		―	14.40%	20.33%
RAMKY	63 Neutral	₹38.81B	18.77		―	-14.64%	-25.44%
Sector *	54 Neutral	C$45.05M	57.91	15.08%	4.51%	1.39%	-26.37%

Shankara Building Products Ltd. Corporate Events

Shankara Building Products Concludes 30th AGM with Key Resolutions Passed

Shankara Building Products Limited held its 30th Annual General Meeting on June 24, 2025, via video conferencing, where key resolutions were passed with the requisite majority. These included the adoption of the company’s audited financial statements, the declaration of a final dividend, and the reappointment of a director. The meeting saw participation from 49 shareholders, representing a significant portion of the company’s capital. This AGM underscores the company’s commitment to transparency and shareholder engagement, potentially strengthening its market position and stakeholder confidence.