Shankara Building Products Ltd. (SHANKARA) AI Stock Analysis

• Market Cap: ₹2.64B
• Dividend Yield: 0.67%
• Average Volume (3M): 69.61K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.74
• Revenue Growth: -3.36%
• EPS Growth: -6.25%
• Country: IN
• Employees: 725
• Sector: Services
• Sector Strength: N/A
• Industry: Home Improvement
• EPS (TTM): -2.13
• Shares Outstanding: 24,249,327
• 10 Day Avg. Volume: 171,315
• 30 Day Avg. Volume: 69,611
• PEG Ratio: -2.31
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 37.68
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ₹131.00 ▲(16.76% Upside)

Shankara Building Products Ltd. has a strong financial foundation with significant revenue growth and a healthy balance sheet. However, technical analysis indicates bearish momentum, which could pose short-term risks. The stock's attractive valuation, with a low P/E ratio, suggests potential for long-term appreciation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates a strong market position and effective business model, supporting long-term expansion and profitability.

Balance Sheet Health

Low financial leverage provides Shankara with financial stability and flexibility, enabling it to invest in growth opportunities without excessive risk.

Cash Flow Improvement

Improving cash flow indicates effective operational management and enhances the company's ability to fund operations and growth initiatives sustainably.

Negative Factors

Margin Pressure

While profitability is present, relatively low net margins suggest potential challenges in cost management or pricing power, which could impact long-term profitability.

Free Cash Flow Volatility

Volatility in free cash flow growth can indicate operational challenges or capital expenditure needs, potentially affecting financial planning and stability.

Margin Sustainability

Sustaining margins in a competitive market is crucial. Current margin levels suggest potential vulnerability to cost increases or competitive pricing pressures.

Shankara Building Products Ltd. Business Overview & Revenue Model

Company Description

Shankara Building Products Ltd. (SHANKARA) is a leading player in the building materials sector in India, specializing in the distribution and retail of a wide range of construction products. The company operates through various segments including retail, wholesale, and online platforms, providing essential building materials such as cement, steel, tiles, sanitary ware, and other related products. SHANKARA caters to both individual consumers and large-scale construction projects, positioning itself as a one-stop solution for all building needs.

How the Company Makes Money

Shankara Building Products Ltd. generates revenue primarily through the sale of building materials and products across its retail and wholesale channels. The company's revenue model is built on a multi-channel approach, which includes physical retail stores, an e-commerce platform, and direct sales to contractors and builders. Key revenue streams include the sale of cement, steel, tiles, and sanitary ware, which are essential for construction projects. Additionally, the company may benefit from strategic partnerships with manufacturers and suppliers, allowing them to offer a diverse range of products and enhance their market presence. The growth in real estate and infrastructure development in India also contributes significantly to SHANKARA's earnings, as the demand for quality building materials continues to rise.

Shankara Building Products Ltd. Financial Statement Overview

Summary

Shankara Building Products Ltd. exhibits a strong financial position with substantial revenue growth, moderate profitability, and solid balance sheet fundamentals. The company's strategic focus on improving operational efficiencies is reflected in its rising EBIT and EBITDA margins. While cash flow metrics show positive trends, maintaining consistent free cash flow growth remains crucial. The company's low leverage and strong equity base provide a stable foundation for future growth.

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	60.50B	56.97B	48.28B	40.30B	24.09B	20.32B
Gross Profit	3.21B	3.18B	2.61B	2.24B	1.59B	1.43B
EBITDA	1.89B	1.69B	1.52B	1.25B	876.50M	771.44M
Net Income	937.50M	774.00M	811.30M	630.50M	343.20M	138.50M
Balance Sheet
Total Assets	0.00	18.02B	15.86B	12.92B	10.41B	9.26B
Cash, Cash Equivalents and Short-Term Investments	231.90M	298.30M	344.00M	58.70M	24.80M	109.04M
Total Debt	0.00	1.04B	866.50M	878.40M	1.33B	1.69B
Total Liabilities	-8.68B	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: Negative
• Last Price: 112.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 112.2 is below the 20-day moving average (MA) of 114.47, below the 50-day MA of 126.27, and below the 200-day MA of 191.42, indicating a bearish trend. The MACD of -6.33 indicates Negative momentum. The RSI at 36.75 is Neutral, neither overbought nor oversold. The STOCH value of 34.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UNIPARTS	73 Outperform	₹21.81B	18.75	―	3.01%	-3.81%	14.23%
SHANKARA	68 Neutral	₹2.64B	3.60	―	0.67%	-3.36%	-6.25%
RAMKY	67 Neutral	₹38.30B	19.14	―	―	-15.09%	-15.98%
CAPACITE	64 Neutral	₹21.66B	11.10	―	―	15.23%	8.61%
SBCL	60 Neutral	₹25.37B	29.18	―	0.68%	4.56%	8.11%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Shankara Building Products Ltd. Corporate Events

Shankara Building Products Announces Effective Demerger into Shankara Buildpro

Shankara Building Products Ltd. has announced the effectiveness of a Scheme of Arrangement involving its demerger into Shankara Buildpro Ltd. The scheme, effective from April 1, 2024, aims to streamline operations and potentially enhance shareholder value. The record date for determining eligible shareholders for equity shares in Shankara Buildpro Ltd. will be announced later, indicating a strategic move to optimize corporate structure and focus.