It is available 32.5 percent lower against its 52 weeks high of Rs 2365 Shankara is an excellent proxy play on housing growth thus we are recommending it with a buy, says Sumit Bilgaiyan of Equity99.
Shankara Building Products is one of the leading organized retailers of home improvement and building products in India. Shankara caters to a large customer base across various end-user segments in urban and semi-urban markets through its multi-channel sales approach, processing facilities, supply chain and logistics capabilities.
Its retail operations are strategically suited to benefit from growth in housing demand, a large market for home improvement, and increasing customer involvement in home solution decisions which have created a need for organized specialty home improvement and building product stores.
Shankara also carries reputed third party brands such as Johnson, Sintex, Uttam Galva, Uttam Value, Futura, APL Apollo, Astral Pipes and Alstone and its own brands such as CenturyRoof, Ganga and Loha at its retail stores. Thus its revenue comprises of retail as well as enterprise sells.
Company’s enterprise sales cater primarily to large end-users, contractors, and OEMs, while the channel sales cater to dealers and other retailers through its extensive branch network. On PAT front, it has reported 48% CAGR growth in last 3 years. It is available 32.5% lower against its 52 weeks high of Rs 2365 Shankara is an excellent proxy play on housing growth thus we are recommending it with a buy.Disclaimer: The author is Founder, Equity99. The views and investment tips expressed by investment experts on moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.