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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Shankara Building Products Ltd

Basic Stock Data

Last Updated: May 30, 2024, 5:50 am

Market Cap 1,653 Cr.
Current Price 682
High / Low929/626
Stock P/E20.4
Book Value 329
Dividend Yield0.37 %
ROCE17.7 %
ROE11.5 %
Face Value 10.0
PEG Ratio1.47

Competitors of Shankara Building Products Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sakuma Exports Ltd 878 Cr. 28.030.6/13.136.5 14.40.18 %9.08 %6.39 % 1.00
TIL Ltd 1,668 Cr. 259259/28.4 81.90.00 %35.1 %% 10.0
Arunjyoti Bio Ventures Ltd 140 Cr. 74.990.7/23.5 0.420.00 %0.93 %5.84 % 10.0
Chandrima Mercantiles Ltd 3.07 Cr. 13.913.9/5.701.81 2160.00 %6.15 %7.18 % 10.0
Padmanabh Industries Ltd 3.89 Cr. 6.407.28/2.30 0.030.00 %0.00 %% 10.0
Industry Average538.59 Cr76.447.6662.550.04%10.25%3.88%8.20

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales5626424466065857828339071,0801,2101,1321,1421,177
Expenses5266164275855707528068801,0511,1751,0981,1071,139
Operating Profit36261821153026272935343638
OPM %6%4%4%3%3%4%3%3%3%3%3%3%3%
Other Income2111010341012
Interest8766666666788
Depreciation6544444444444
Profit before tax241691252116202326232428
Tax %11%30%26%24%27%26%25%21%28%26%25%26%24%
Net Profit22116941612161619171821
EPS in Rs9.554.842.743.931.546.815.266.797.168.387.567.978.83

Last Updated: May 11, 2024, 1:38 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:03 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,7661,9271,9792,0362,3102,5492,5462,6402,0382,4184,0304,828
Expenses1,6801,8381,8891,9162,1592,3732,4472,5251,9672,3333,9124,677
Operating Profit878990120152175991157185117151
OPM %5%5%5%6%7%7%4%4%4%4%3%3%
Other Income011111956385
Interest354247465146474333242432
Depreciation569101114152524171616
Profit before tax48423565901164651204684108
Tax %33%32%35%37%35%36%29%22%31%25%25%25%
Net Profit322923415974334014346381
EPS in Rs15.0313.1310.3218.6225.7232.2914.3317.456.0615.0227.5933.46
Dividend Payout %7%8%10%8%11%10%10%11%0%7%9%9%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-9.38%-20.69%78.26%43.90%25.42%-55.41%21.21%-65.00%142.86%85.29%28.57%
Change in YoY Net Profit Growth (%)0.00%-11.31%98.95%-34.36%-18.48%-80.83%76.62%-86.21%207.86%-57.56%-56.72%

Growth

Compounded Sales Growth
10 Years:10%
5 Years:14%
3 Years:33%
TTM:20%
Compounded Profit Growth
10 Years:11%
5 Years:20%
3 Years:80%
TTM:29%
Stock Price CAGR
10 Years:%
5 Years:5%
3 Years:16%
1 Year:-4%
Return on Equity
10 Years:10%
5 Years:8%
3 Years:10%
Last Year:11%

Last Updated: May 25, 2024, 8:53 am

Balance Sheet

Last Updated: May 2, 2024, 7:12 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital20212222222323232323232323
Reserves141179211231269367433456485499533594650
Borrowings22227528429322322324819727816913388125
Other Liabilities96134158179285329509435389235352587634
Total Liabilities4806096767257999421,2131,1121,1759261,0411,2921,432
Fixed Assets109138175205233259297253282256258281287
CWIP0000000402240
Investments0000000000000
Other Assets3704725015215666839168558926677811,0071,144
Total Assets4806096767257999421,2131,1121,1759261,0411,2921,432

Reserves and Borrowings Chart

Shankara Building Products Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -449648015910640171-301337092
Cash from Investing Activity -51-33-38-40-38-37-74-4855-8-18-45
Cash from Financing Activity 9423-26-40-122-6934-115-21-128-60-43
Net Cash Flow-1-11-000-184-3-83

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-188.00-195.00-203.00-103.00-71.00-73.00-98.00-163.00-98.00-48.0029.00151.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days565447485049614859535346
Inventory Days374246485352696061616141
Days Payable202525294848766055405250
Cash Conversion Cycle737168675552534865746237
Working Capital Days706963624844564865736339
ROCE %19%17%15%21%25%25%13%13%7%10%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters56.45%56.48%56.48%52.10%52.10%52.11%52.11%52.20%52.20%52.20%52.24%49.23%
FIIs23.67%22.68%22.65%8.66%8.08%8.23%8.16%8.16%9.88%11.45%11.68%11.76%
DIIs4.33%4.33%4.32%4.15%4.22%4.30%4.52%5.69%5.36%6.01%6.29%5.13%
Public15.55%16.51%16.55%35.08%35.60%35.37%35.22%33.94%32.57%30.34%29.79%33.88%
No. of Shareholders22,89326,32824,61521,53620,20819,72120,22119,45320,32224,71229,08331,743

Shareholding Pattern Chart

No. of Shareholders

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)27.5915.026.0617.4514.33
Diluted EPS (Rs.)27.5915.026.0617.4514.33
Cash EPS (Rs.)34.7422.5616.5528.5622.48
Book Value[Excl.RevalReserv]/Share (Rs.)281.44243.31228.31222.10209.68
Book Value[Incl.RevalReserv]/Share (Rs.)281.44243.31228.31222.10209.68
Revenue From Operations / Share (Rs.)1763.551058.38892.091155.281161.57
PBDIT / Share (Rs.)54.6938.3733.7853.4354.20
PBIT / Share (Rs.)47.5430.8223.2942.3246.05
PBT / Share (Rs.)36.9220.168.8123.3521.24
Net Profit / Share (Rs.)27.5915.026.0617.4514.33
NP After MI And SOA / Share (Rs.)27.5915.026.0617.4514.33
PBDIT Margin (%)3.103.623.784.624.66
PBIT Margin (%)2.692.912.613.663.96
PBT Margin (%)2.091.900.982.021.82
Net Profit Margin (%)1.561.410.671.511.23
NP After MI And SOA Margin (%)1.561.410.671.511.23
Return on Networth / Equity (%)9.806.172.657.856.83
Return on Capital Employeed (%)15.8911.579.1417.5420.93
Return On Assets (%)4.883.291.493.392.94
Long Term Debt / Equity (X)0.040.060.070.000.01
Total Debt / Equity (X)0.120.210.280.470.40
Asset Turnover Ratio (%)3.752.622.032.392.33
Current Ratio (X)1.631.771.901.401.37
Quick Ratio (X)0.920.910.970.760.74
Inventory Turnover Ratio (X)0.000.000.010.010.00
Dividend Payout Ratio (NP) (%)3.630.000.0020.0527.34
Dividend Payout Ratio (CP) (%)2.880.000.0012.2517.43
Earning Retention Ratio (%)96.370.000.0079.9572.66
Cash Earning Retention Ratio (%)97.120.000.0087.7582.57
Interest Coverage Ratio (X)5.153.602.332.822.18
Interest Coverage Ratio (Post Tax) (X)3.602.411.421.971.58
Enterprise Value (Cr.)1471.281910.751076.29723.311111.47
EV / Net Operating Revenue (X)0.360.790.520.270.41
EV / EBITDA (X)11.7721.7913.945.928.97
MarketCap / Net Operating Revenue (X)0.340.740.460.190.35
Retention Ratios (%)96.360.000.0079.9472.65
Price / BV (X)2.183.231.800.991.95
Price / Net Operating Revenue (X)0.340.740.460.190.35
EarningsYield0.040.010.010.070.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹774.69

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 13.59% compared to the current price ₹682

Intrinsic Value: ₹882.42

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 29.39% compared to the current price ₹682

Last 5 Year EPS CAGR: 13.91%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.08%, which is a positive sign.
  2. The company has higher reserves (388.31 cr) compared to borrowings (212.15 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.08 cr) and profit (62.58 cr) over the years.
  1. The stock has a high average Working Capital Days of 58.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 60.42, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Shankara Building Products Ltd:
    1. Net Profit Margin: 1.56%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 15.89% (Industry Average ROCE: 10.25%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ✓ ROE%: 9.80% (Industry Average ROE: 3.88%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.60
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.92
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 20.4 (Industry average Stock P/E: 7.66)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✓ Total Debt / Equity: 0.12
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Shankara Building Products Ltd. is a Public Limited Listed company incorporated on 13/10/1995 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L26922KA1995PLC018990 and registration number is 018990. Currently Company is involved in the business activities of Other specialized wholesale. Company’s Total Operating Revenue is Rs. 2328.75 Cr. and Equity Capital is Rs. 22.85 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Trading & DistributorsG2, Farah Winsford, No. 133, Infantry Road, Bengaluru Karnataka 560001compliance@shankarabuildpro.com
http://www.shankarabuildpro.com
Management
NamePosition Held
Mr. V RavichandarChairman & Ind.Director
Mr. Sukumar SrinivasManaging Director
Mr. C RavikumarWhole Time Director
Mr. R S V Siva PrasadNon Exe.Non Ind.Director
Ms. Jayashri MuraliIndependent Director
Mr. B JayaramanIndependent Director
Mr. Chandu NairIndependent Director

FAQ

What is the latest fair value of Shankara Building Products Ltd?

The latest fair value of Shankara Building Products Ltd is ₹774.69.

What is the Market Cap of Shankara Building Products Ltd?

The Market Cap of Shankara Building Products Ltd is 1,653 Cr..

What is the current Stock Price of Shankara Building Products Ltd as on 30 May 2024?

The current stock price of Shankara Building Products Ltd as on 30 May 2024 is ₹682.

What is the High / Low of Shankara Building Products Ltd stocks in FY 2024?

In FY 2024, the High / Low of Shankara Building Products Ltd stocks is 929/626.

What is the Stock P/E of Shankara Building Products Ltd?

The Stock P/E of Shankara Building Products Ltd is 20.4.

What is the Book Value of Shankara Building Products Ltd?

The Book Value of Shankara Building Products Ltd is 329.

What is the Dividend Yield of Shankara Building Products Ltd?

The Dividend Yield of Shankara Building Products Ltd is 0.37 %.

What is the ROCE of Shankara Building Products Ltd?

The ROCE of Shankara Building Products Ltd is 17.7 %.

What is the ROE of Shankara Building Products Ltd?

The ROE of Shankara Building Products Ltd is 11.5 %.

What is the Face Value of Shankara Building Products Ltd?

The Face Value of Shankara Building Products Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Shankara Building Products Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE