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Last Updated on: 23 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Shankara Building Products Ltd

About the Company - Shankara Building Products Ltd

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

Shankara Building Products Ltd. Share Price Update

Share PriceValue
Today₹773.40
Previous Day₹766.70

Basic Stock Data of Shankara Building Products Ltd

Market Cap 1,783 Cr.
Current Price 781
High / Low929/574
Stock P/E23.4
Book Value 295
Dividend Yield0.33 %
ROCE15.6 %
ROE10.8 %
Face Value 10.0

Data Source: screener.in

Competitors of Shankara Building Products Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Parker Agrochem Exports Ltd 9.66 Cr. 20.229.1/6.813.85 9.060.00 %22.7 %24.1 % 10.0
Shiv Aum Steels Ltd 424 Cr. 312325/20039.0 75.60.00 %17.4 %16.2 % 10.0
Aayush Food And Herbs Ltd 37.7 Cr. 116116/18.8377 14.80.00 %5.10 %8.95 % 10.0
TIL Ltd 507 Cr. 506528/103 3110.00 %35.1 %% 10.0
Oswal Agro Mills Ltd 658 Cr. 49.059.0/23.5430 62.30.00 %1.97 %2.91 % 10.0
Industry Average327.27 Cr200.64169.9794.550%16.45%10.43%10

Shankara Building Products Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales4885626424466065857828339071,0801,2101,1321,142
Expenses4695266164275855707528068801,0511,1751,0981,107
Operating Profit19362618211530262729353436
OPM %4%6%4%4%3%3%4%3%3%3%3%3%3%
Other Income2211101034101
Interest8876666666678
Depreciation7654444444444
Profit before tax52416912521162023262324
Tax %-15%11%30%26%24%27%26%25%21%28%26%25%26%
Net Profit6221169416121616191718
EPS in Rs2.749.554.842.743.931.546.815.266.797.168.387.567.97

Shankara Building Products Ltd Quarterly Chart

Shankara Building Products Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,4121,7661,9271,9792,0362,3102,5492,5462,6402,0382,4184,0304,565
Expenses1,3421,6801,8381,8891,9162,1592,3732,4472,5251,9672,3333,9124,431
Operating Profit70878990120152175991157185117134
OPM %5%5%5%5%6%7%7%4%4%4%4%3%3%
Other Income0011111956385
Interest23354247465146474333242427
Depreciation3569101114152524171616
Profit before tax454842356590116465120468496
Tax %31%33%32%35%37%35%36%29%22%31%25%25%
Net Profit31322923415974334014346371
EPS in Rs14.7115.0313.1310.3218.6225.7232.2914.3317.456.0615.0227.5931.07
Dividend Payout %7%7%8%10%8%11%10%10%11%0%7%9%

Shankara Building Products Ltd Profit & Loss Yearly Chart

Shankara Building Products Ltd Growth

Compounded Sales Growth
10 Years:9%
5 Years:10%
3 Years:15%
TTM:47%
Compounded Profit Growth
10 Years:7%
5 Years:-3%
3 Years:16%
TTM:52%
Stock Price CAGR
10 Years:%
5 Years:17%
3 Years:24%
1 Year:11%
Return on Equity
10 Years:10%
5 Years:7%
3 Years:7%
Last Year:11%

Shankara Building Products Ltd Balance Sheet

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

Shankara Building Products Ltd 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

Shankara Building Products Ltd 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%

Shankara Building Products Ltd Financial Efficiency Indicators Chart

Shankara Building Products Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Nov 2023
Promoters56.45%56.45%56.48%56.48%52.10%52.10%52.11%52.11%52.20%52.20%52.20%49.19%
FIIs23.68%23.67%22.68%22.65%8.66%8.08%8.23%8.16%8.16%9.88%11.45%10.78%
DIIs4.32%4.33%4.33%4.32%4.15%4.22%4.30%4.52%5.69%5.36%6.01%5.66%
Public15.54%15.55%16.51%16.55%35.08%35.60%35.37%35.22%33.94%32.57%30.34%34.37%
No. of Shareholders20,90422,89326,32824,61521,53620,20819,72120,22119,45320,32224,71224,712

Shankara Building Products Ltd Shareholding Pattern Chart

No. of Shankara Building Products Ltd Shareholders

Shankara Building Products Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Franklin India Smaller Companies Fund10714670.6776.47
Templeton India Value Fund1929880.8213.77
Franklin India Equity Hybrid Fund550000.243.93
Franklin India Balanced Advantage Fund500000.233.57
Franklin India Pension Plan - Dividend100000.150.71
Franklin India Pension Plan - Growth100000.150.71
Franklin India Debt Hybrid Fund - Plan A50000.150.36
Franklin India Equity Savings Fund20000.050.14

Shankara Building Products Ltd ROCE Trend

Shankara Building Products Ltd EPS Trend

Shankara Building Products Ltd 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

Shankara Building Products Ltd Profitability Ratios (%)

Shankara Building Products Ltd Liquidity Ratios

Shankara Building Products Ltd Liquidity Ratios (%)

Shankara Building Products Ltd Interest Coverage Ratios (X)

Shankara Building Products Ltd Valuation Ratios

Fair Value / Intrinsic Value of Shankara Building Products Ltd

Fair Value: ₹747.98

The stock is overvalued by 4.23% compared to the current price ₹781

*Investments are subject to market risks

Strength and Weakness of Shankara Building Products Ltd

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 (2.00 cr) and profit (60.31 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 38.00 and average Dividend Yield of 3.17%.
  2. The stock has a high average Working Capital Days of 58.33, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 60.42, which may not be favorable.

Should I Buy Shankara Building Products Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding 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: 11.12%)
      • 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. 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.
    4. 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.
    5. ✓ Stock P/E: 23.0 (Industry average Stock P/E: 30.38)
      • 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.
    6. ✓ 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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