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

Shankara Building Products Ltd. (SHANKARA) AI Stock Analysis

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IN:SHANKARA

Shankara Building Products Ltd.

(SHANKARA)

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Outperform 76 (OpenAI - 5.2)
Rating:76Outperform
Price Target:
₹124.00
▼(-2.97% Downside)
Action:UpgradedDate:01/07/26
The score is driven mainly by strong financial performance (growth, low leverage, improving cash flow) and an attractive valuation (very low P/E). This is partially offset by mixed technicals, with a negative MACD and price still below longer-term moving averages despite short-term strength.
Positive Factors
Revenue Growth
Sustained ~18% top-line growth reflects durable demand in construction/home-improvement and scaling of distribution. Over the next several months, continued revenue expansion supports operating leverage, bargaining power with suppliers, and stronger shelf presence across retail and B2B channels.
Negative Factors
Thin Net Margins
Net margins are very thin despite revenue growth, leaving limited buffer against cost inflation or input-price shocks. Small margin pads constrain ability to absorb higher logistics, fuel, or commodity costs and reduce scope to fund discretionary investments without relying on higher volumes.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained ~18% top-line growth reflects durable demand in construction/home-improvement and scaling of distribution. Over the next several months, continued revenue expansion supports operating leverage, bargaining power with suppliers, and stronger shelf presence across retail and B2B channels.
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 materials and home improvement products through a combination of (1) retail sales via its own stores and (2) B2B/B2C distribution supply to contractors, project customers, and other trade channels...

Shankara Building Products Ltd. Financial Statement Overview

Summary
Strong revenue growth (~18% YoY) and improving gross margin support a solid operating picture, backed by low leverage (debt-to-equity 0.12) and a strong equity base (48.17%). Profitability is positive but thin (net margin 1.36%), and while free cash flow has turned positive (₹375.7m), consistency in cash generation still needs monitoring.
Income Statement
82
Very Positive
Balance Sheet
75
Positive
Cash Flow
78
Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue50.00B56.97B48.28B40.30B24.09B20.32B
Gross Profit2.82B3.18B2.61B2.24B1.59B1.43B
EBITDA1.51B1.69B1.52B1.25B876.50M771.44M
Net Income733.80M774.00M811.30M630.50M343.20M138.50M
Balance Sheet
Total Assets6.69B18.02B15.86B12.92B10.41B9.26B
Cash, Cash Equivalents and Short-Term Investments95.90M298.30M344.00M58.70M24.80M109.04M
Total Debt636.30M1.04B866.50M878.40M1.33B1.69B
Total Liabilities2.31B9.34B7.88B6.49B4.85B4.04B
Stockholders Equity4.39B8.68B7.98B6.43B5.56B5.22B
Cash Flow
Free Cash Flow-381.00M375.70M-204.60M472.10M497.10M1.16B
Operating Cash Flow-102.90M636.00M97.20M919.60M696.40M1.33B
Investing Cash Flow-282.10M-263.90M-272.00M-452.00M-183.80M-81.17M
Financing Cash Flow100.00K-423.70M399.60M-433.70M-596.80M-1.28B

Shankara Building Products Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price127.80
Price Trends
50DMA
106.63
Positive
100DMA
111.11
Positive
200DMA
168.97
Negative
Market Momentum
MACD
3.55
Negative
RSI
64.78
Neutral
STOCH
81.85
Negative
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 109.15, above the 50-day MA of 106.63, and below the 200-day MA of 168.97, indicating a neutral trend. The MACD of 3.55 indicates Negative momentum. The RSI at 64.78 is Neutral, neither overbought nor oversold. The STOCH value of 81.85 is Negative, 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
76
Outperform
₹2.91B51.200.68%-3.36%-6.25%
70
Outperform
₹27.04B27.690.67%4.56%8.11%
70
Outperform
₹23.07B16.413.06%-3.81%14.23%
61
Neutral
₹33.05B12.27-15.09%-15.98%
58
Neutral
₹19.38B10.6515.23%8.61%
55
Neutral
$13.29B17.4210.03%0.93%7.13%-12.93%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SHANKARA
Shankara Building Products Ltd.
119.85
-21.90
-15.45%
IN:CAPACITE
Capacit'e Infraprojects Ltd.
229.10
-123.50
-35.03%
IN:RAMKY
Ramky Infrastructure Limited
477.55
66.20
16.09%
IN:SBCL
Shivalik Bimetal Controls Ltd
469.45
86.36
22.54%
IN:UNIPARTS
Uniparts India Ltd.
511.00
224.22
78.19%
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: Jan 07, 2026