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Last Updated : May 17, 2019 05:14 PM IST | Source: Moneycontrol.com

Hold Shankara Building Products; target of Rs 485: ICICI Direct

ICICI Direct recommended hold rating on Shankara Building Products with a target price of Rs 485 in its research report dated dated May 16, 2019.

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ICICI Direct's research report on Shankara Building Products


Shankara's topline de-grew 18.6% YoY to Rs 619.7 crore on account of sharp revenue de-growth in the channel & enterprise division. The EBITDA margin contracted 445 bps YoY to 2.7% mainly due to a sharp contraction in EBIT margins of the channel & enterprise division. Retail division EBIT margin was at 7.3% in Q4FY19 (10.8% in Q4FY18). PAT de-grew sharply by 92.5% YoY to Rs 1.6 crore due to sharp EBITDA margin contraction.


Outlook


Hence, we have a HOLD recommendation on the stock with a target price of Rs 485/share. We value its retail business at Rs 466/share (11x FY20E EV/EBIT).


For all recommendations report, click here


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First Published on May 17, 2019 05:14 pm
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