BSE:540425

Stock Analysis Report

Shankara Building Products

Executive Summary

Shankara Building Products Limited operates as a retailer of home improvement and building products in India.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.

Risks

  • Shankara Building Products has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Shankara Building Products's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

20.6%

BSE:540425

4.8%

IN Specialty Retail

1.5%

IN Market


1 Year Return

-63.1%

BSE:540425

-26.8%

IN Specialty Retail

-11.2%

IN Market

540425 underperformed the Specialty Retail industry which returned -26.8% over the past year.

540425 underperformed the Market in India which returned -11.2% over the past year.


Share holder returns

540425IndustryMarket
7 Day20.6%4.8%1.5%
30 Day72.5%2.0%1.0%
90 Day-6.6%-14.3%-5.6%
1 Year-63.0%-63.1%-26.5%-26.8%-9.5%-11.2%
3 Yearn/a-15.7%-16.4%19.7%13.7%
5 Yearn/a43.9%40.9%34.6%21.9%

Price Volatility Vs. Market

How volatile is Shankara Building Products's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 year ago | Simply Wall St

Top Growth Stocks in July

1 year ago | Simply Wall St

Top Growth Stocks in July

1 year ago | Simply Wall St

Best-In-Class Growth Stocks

Valuation

Is Shankara Building Products undervalued based on future cash flows and its price relative to the stock market?

47.07x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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%).


Price Based on Earnings

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.


Price Based on Expected Growth

Shankara Building Products is good value based on expected growth next year.


Price Based on Value of Assets

Shankara Building Products is overvalued based on assets compared to the IN Specialty Retail industry average.


Next Steps

Future Growth

How is Shankara Building Products expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

53.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Shankara Building Products's revenue is expected to grow by 12.4% yearly, however this is not considered high growth (20% yearly).

Shankara Building Products's earnings are expected to grow significantly at over 20% yearly.

Shankara Building Products's revenue growth is expected to exceed the India market average.

Shankara Building Products's earnings growth is expected to exceed the India market average.

Shankara Building Products's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Shankara Building Products will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Shankara Building Products performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Shankara Building Products's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Shankara Building Products's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Shankara Building Products's 1-year earnings growth is negative, it can't be compared to the IN Specialty Retail industry average.


Return on Equity

Shankara Building Products has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Shankara Building Products used its assets more efficiently than the IN Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

Shankara Building Products's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Shankara Building Products's financial position?


Financial Position Analysis

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's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Shankara Building Products's level of debt (41.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (120% vs 41.2% today).

Debt is well covered by operating cash flow (86.6%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.5x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 4.2x debt.


Next Steps

Dividend

What is Shankara Building Products's current dividend yield, its reliability and sustainability?

1.74%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Shankara Building Products's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.57%).

Shankara Building Products's dividend is below the markets top 25% of dividend payers in India (2.35%).

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 has only been paying a dividend for 2 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are well covered by earnings (6.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Shankara Building Products's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Siddhartha Mundra (40yo)

2.3yrs

Tenure

₹9,602,000

Compensation

Mr. Siddhartha Mundra has been the Chief Executive Officer of Shankara Building Products Limited since June 9, 2017. Mr. Mundra serves as Vice President of Fairwinds Private Equity and is a part of the Adv ...


CEO Compensation Analysis

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

Siddhartha's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.5yrs

Average Tenure

58yo

Average Age

The tenure for the Shankara Building Products management team is about average.


Board Age and Tenure

8.3yrs

Average Tenure

59yo

Average Age

The tenure for the Shankara Building Products board of directors is about average.


Insider Trading

More shares have been bought than sold by Shankara Building Products individual insiders in the past 3 months.


Recent Insider Transactions

Buy₹265,05203 Sep 19
Sukumar Srinivas
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares1,000
Max Price₹265.05
Buy₹1,096,04130 Aug 19
Sukumar Srinivas
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares4,000
Max Price₹276.10
Buy₹872,40028 Aug 19
Sukumar Srinivas
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares3,000
Max Price₹291.93
Buy₹439,37826 Aug 19
Sukumar Srinivas
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares1,500
Max Price₹292.92
Buy₹861,18123 Aug 19
Sukumar Srinivas
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares3,000
Max Price₹287.06
Buy₹895,21022 Aug 19
Sukumar Srinivas
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares3,000
Max Price₹298.40
Buy₹1,454,13621 Aug 19
Sukumar Srinivas
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares5,000
Max Price₹290.83
Buy₹265,32520 Aug 19
Siddhartha Mundra
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares1,000
Max Price₹265.33
Buy₹356,86120 Aug 19
Sukumar Srinivas
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares1,353
Max Price₹263.76
Sell₹68,62328 Feb 19
Sukumar Srinivas
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares1,551
Max Price₹427.54
Buy₹858,75128 Feb 19
Sukumar Srinivas
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares2,000
Max Price₹429.38
Sell₹4,167,39212 Jan 19
K.G Kashinath
EntityIndividual
Shares8,000
Max Price₹520.92
Buy₹669,00028 Nov 18
Sukumar Srinivas
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares1,000
Max Price₹669.00
Sell₹5,061,44222 Nov 18
K.G Kashinath
EntityIndividual
Shares6,000
Max Price₹843.57
Sell₹7,109,46005 Oct 18
K.G Kashinath
EntityIndividual
Shares6,000
Max Price₹1,184.91

Ownership Breakdown


Management Team

  • Alex Varghese (47yo)

    Chief Financial Officer

    • Tenure: 4.5yrs
    • Compensation: ₹3.11m
  • Siddhartha Mundra (40yo)

    Chief Executive Officer

    • Tenure: 2.3yrs
    • Compensation: ₹9.60m
  • Sukumar Srinivas (59yo)

    Founder

    • Tenure: 12.1yrs
    • Compensation: ₹12.57m
  • V. Devanathan (62yo)

    Regional Director of Tamil Nadu

    • Tenure: 23.9yrs
    • Compensation: ₹565.00k
  • R. S. Sivaprasad (62yo)

    Whole time Director

    • Tenure: 18.7yrs
    • Compensation: ₹4.69m
  • Ravikumar Chowdappa (53yo)

    Whole-Time Director

    • Tenure: 18.7yrs
    • Compensation: ₹5.88m
  • C. Jaiprakash (58yo)

    General Manager

    • Tenure: 23.9yrs
    • Compensation: ₹448.00k
  • Ereena Vikram

    Company Secretary & Compliance Officer

    • Tenure: 3yrs
    • Compensation: ₹800.00k

Board Members

  • Chandu Nair (57yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: ₹50.00k
  • B. Jayaraman (65yo)

    Non-Executive Independent Director

    • Tenure: 1.1yrs
    • Compensation: ₹50.00k
  • Sukumar Srinivas (59yo)

    Founder

    • Tenure: 12.1yrs
    • Compensation: ₹12.57m
  • R. S. Sivaprasad (62yo)

    Whole time Director

    • Tenure: 18.7yrs
    • Compensation: ₹4.69m
  • Ravikumar Chowdappa (53yo)

    Whole-Time Director

    • Tenure: 18.7yrs
    • Compensation: ₹5.88m
  • V. Ravichandar (62yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: ₹50.00k
  • Jayashri Murali (59yo)

    Independent Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: ₹50.00k

Company Information

Shankara Building Products Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shankara Building Products Limited
  • Ticker: 540425
  • Exchange: BSE
  • Founded: 1995
  • Industry: Home Improvement Retail
  • Sector: Retail
  • Market Cap: ₹10.139b
  • Shares outstanding: 22.85m
  • Website: https://www.shankarabuildpro.com

Number of Employees


Location

  • Shankara Building Products Limited
  • G2 Farah Winsford
  • No. 133, Infantry Road
  • Bengaluru
  • Karnataka
  • 560001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHANKARANSEI (National Stock Exchange of India)YesEquity SharesININRApr 2017
540425BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2017

Biography

Shankara Building Products Limited operates as a retailer of home improvement and building products in India. It operates through Retail, and Channel & Enterprise segments. The company offers structural st ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 13:02
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.