Fundamental Analysis

Shankara Building Products Ltd.

Ticker : 540425
BUY: ₹ 706
Target: ₹ 810

Shankara Building Products Limited is a leading organised retailer of home improvement and building products in India, operating under the brand name, ‘Shankara Buildpro’. The company runs over a hundred stores spread across South India. On the consolidated quarterly front, the company recorded net sales of Rs 584.95 crore for Q3FY22, which is an increase of 4.06 per cent from its net sales of Rs 562.12 crore reported for Q3FY21. The operating profit declined by 60.17 per cent to Rs 15.28 crore in Q3FY22 from Rs 38.36 crore posted in Q3FY21. The net profit was recorded at Rs 3.52 crore in Q3FY22 from Rs 21.81 crore in Q3FY21, showing a decrease of 83.86 per cent. The company witnessed strong footfalls and significant growth despite a lower store count in the retail business. It was able to manage its working capital well despite difficulties and is seeing a revival in the real estate industry. Hence, we recommend BUY.