Shankara Building Products Ltd. (SHANKARA) AI Stock Analysis

Shankara Building Products Ltd.

(NSE:SHANKARA)

Select Model

Rating:74Outperform

Price Target:INR 130.00▲(11.73% Upside)

Action:upgraded

Date:08/09/26

Strong financial growth through 2025 and bullish technical indicators drive the score, supported by attractive valuation; however, projected 2026 declines pose key risks tempering optimism.

Positive Factors

Diversified Business ModelThe broad product portfolio and presence across retail and other sales channels allow Shankara to serve homeowners, contractors, and institutional customers. This diversified customer and product base can support cross-selling and reduce dependence on any single construction category over the medium term.

Negative Factors

Sharp Revenue and Profit DeclineThe steep contraction in revenue and earnings materially weakens visibility into the company’s near-term operating scale. Lower gross and net margins indicate that profitability has not merely declined with sales, but that earnings quality and the ability to absorb fixed costs have also deteriorated.

Shankara Building Products Ltd. (SHANKARA) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 2.90B
Dividend Yield: 2.58%
Average Volume (3M): 14.34K
Price to Earnings (P/E): 56.8
Beta (1Y): 0.78
Revenue Growth: -77.00%
EPS Growth: -94.71%
Country: India
Employees: 130
Sector: General
Sector Strength: 55
Industry: Home Improvement

Shankara Building Products Ltd. Business Overview & Revenue Model

Company Description

Shankara Building Products Limited stands as a leading Indian retailer specializing in construction materials and home improvement goods. The company operates through three core segments: Retail, Channel, and Enterprise. Its extensive product range i...

Shankara Building Products Ltd. Financial Statement Overview

Summary

Solid revenue and equity growth through 2025, with stable margins and low leverage, but projected sharp declines in 2026 introduce risks to profitability and cash flow.

Income Statement

65Positive

Balance Sheet

75Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	26.85B	13.64B	56.97B	48.28B	40.30B	24.09B
Gross Profit	1.49B	523.00M	3.18B	2.61B	2.24B	1.59B
EBITDA	773.30M	234.80M	1.69B	1.52B	1.25B	878.40M
Net Income	358.20M	38.40M	774.00M	811.30M	630.50M	343.20M
Balance Sheet
Total Assets	7.57B	7.57B	18.02B	15.86B	12.92B	10.41B
Cash, Cash Equivalents and Short-Term Investments	76.20M	76.20M	298.30M	344.00M	58.70M	24.80M
Total Debt	1.92B	1.92B	1.04B	866.50M	878.40M	1.33B
Total Liabilities	3.09B	3.09B	9.34B	7.88B	6.49B	4.85B
Stockholders Equity	4.47B	4.47B	8.68B	7.98B	6.43B	5.56B
Cash Flow
Free Cash Flow	-381.00M	-1.79B	375.70M	-204.60M	472.10M	497.10M
Operating Cash Flow	-102.90M	-1.14B	636.00M	97.20M	919.60M	696.40M
Investing Cash Flow	-282.10M	-636.30M	-263.90M	-272.00M	-452.00M	-183.80M
Financing Cash Flow	100.00K	1.38B	-423.70M	399.60M	-433.70M	-596.80M

Shankara Building Products Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price116.35

Price Trends

50DMA133.39Negative

100DMA132.81Negative

200DMA122.68Negative

Market Momentum

MACD-5.19Negative

RSI38.91Neutral

STOCH59.11Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHANKARA, the sentiment is Negative. The current price of 116.35 is below the 20-day moving average (MA) of 117.69, below the 50-day MA of 133.39, and below the 200-day MA of 122.68, indicating a bearish trend. The MACD of -5.19 indicates Negative momentum. The RSI at 38.91 is Neutral, neither overbought nor oversold. The STOCH value of 59.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SHANKARA.

Shankara Building Products Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SHANKARA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:SHANKARA	74Outperform	INR 2.82B	56.78	―	2.58%	-77.00%	-94.71%
IN:SUPERHOUSE	57Neutral	INR 1.65B	21.24	―	0.53%	-1.13%	115.74%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:RUSHIL	49Neutral	INR 4.55B	20.25	―	0.32%	7.05%	-3.28%
IN:SPENCERS	42Neutral	INR 1.94B	-0.78	―	―	-0.49%	6.19%
IN:PRAXIS	38Underperform	INR 785.99M	-1.75	―	―	-11.04%	-6.64%

* General Sector Average

Performance Comparison

IN:SHANKARA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SHANKARA	Shankara Building Products Ltd.	116.35	-25.60	-18.03%
IN:PRAXIS	Praxis Home Retail Ltd.	4.23	-8.27	-66.16%
IN:RUSHIL	Rushil Decor Ltd.	15.49	-11.32	-42.21%
IN:SPENCERS	Spencer's Retail Ltd.	21.57	-28.93	-57.29%
IN:SUPERHOUSE	Superhouse Limited	149.95	-11.30	-7.01%

Shankara Building Products Ltd. Corporate Events

Shankara Building Products Appoints Dhananjay Srinivas Managing Director

Nov 1, 2026

The board appointed existing Non-Executive and Non-Independent Director Dhananjay Mirlay Srinivas as Managing Director, effective November 1, 2026, for a five-year term, subject to shareholder and other required regulatory approvals.The appointment f...

Shankara Building Products Clarifies NSE Query on Segment Reporting and Audit Format

Sep 16, 2026

Shankara Building Products Ltd. operates in the building materials and construction supplies sector, with its corporate base in Bengaluru. Following a demerger of its trading business to Shankara Buildpro Ltd., the company’s remaining operation...

Shankara Building Products Publishes Q1 FY27 Unaudited Results in Newspapers

Aug 6, 2026

Shankara Building Products Ltd. has notified the stock exchanges that it has published newspaper advertisements in Business Standard and Kannada Prabha detailing its unaudited financial results for the quarter ended June 30, 2026. The disclosure, mad...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 09, 2026

Shankara Building Products Ltd. AI Stock Analysis