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Shankara Building Products Ltd

NSE: SHANKARA BSE: 540425

122.70

(-2.00%)

Sun, 24 May 2026, 10:59 am

Shankara Building Products Analysis

dividend

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Pros

  • Dividends paid are thoroughly covered by earnings (12.3x coverage).
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Cons

  • Shankara Building Products has only been paying a dividend for 3 years, and since then dividends per share have fallen.
  • Shankara Building Products has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Shankara Building Products's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Shankara Building Products's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Shankara Building Products is expected to become cash flow positive in 2 years.
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Cons

  • Shankara Building Products's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Shankara Building Products's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
  • Shankara Building Products's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.2%.
  • Shankara Building Products's earnings are expected to decrease over the next year.
  • Shankara Building Products's net income is expected to decrease over the next 2 years.
  • Shankara Building Products is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Performance (ROE) is not expected to exceed the current IN Specialty Retail industry average.
  • A decline in Shankara Building Products's performance (ROE) is expected over the next 3 years.
  • Shankara Building Products's revenue is expected to decrease over the next 2 years.
  • Shankara Building Products's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
  • Shankara Building Products's revenues are expected to decrease over the next 1-3 years, this is below the India market average.

health

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Pros

  • Shankara Building Products is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Shankara Building Products is profitable, therefore cash runway is not a concern.
  • Shankara Building Products is profitable, therefore cash runway is not a concern.
  • Debt is covered by short term assets, assets are 3.7x debt.
  • Shankara Building Products's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (112.9% vs 47.1% today).
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Cons

  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are not well covered by earnings (EBIT is 2.1x annual interest expense, ideally 3x coverage).
  • Shankara Building Products's level of debt (47.1%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Shankara Building Products board of directors is about average.
  • Siddhartha's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The average tenure for the Shankara Building Products management team is over 5 years, this suggests they are a seasoned and experienced team.
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Cons

  • Siddhartha's remuneration is higher than average for companies of similar size in India.

misc

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Pros

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    Cons

    • Shankara Building Products is covered by less than 3 analysts.
    • Shankara Building Products has significant price volatility in the past 3 months.

    past

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    Pros

    • Shankara Building Products's 1-year earnings growth exceeds its 5-year average (29.2% vs -3.4%)
    • Shankara Building Products used its assets more efficiently than the IN Specialty Retail industry average last year based on Return on Assets.
    • Shankara Building Products's earnings growth has exceeded the IN Specialty Retail industry average in the past year (29.2% vs 16.8%).
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    Cons

    • Shankara Building Products's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
    • Shankara Building Products's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Shankara Building Products has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

    value

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    Pros

    • 540425 outperformed the Specialty Retail industry which returned -63.5% over the past year.
    • BSE:540425 is up 23.1% outperforming the Specialty Retail industry which returned 12.6% over the past month.
    • BSE:540425 is up 23.1% outperforming the market in India which returned 8% over the past month.
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    Cons

    • Shankara Building Products's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Shankara Building Products's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Shankara Building Products is overvalued based on assets compared to the IN Specialty Retail industry average.
    • Shankara Building Products earnings are not expected to grow next year, we can't assess if its growth is good value.
    • Shankara Building Products is overvalued based on earnings compared to the IN Specialty Retail industry average.
    • Shankara Building Products is overvalued based on earnings compared to the India market.
    • 540425 underperformed the Market in India which returned -14.5% over the past year.

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