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Shankara Building Products Limited (SHANKARA) Fair Value & Analysis

Consumer Cyclical · IN · Market cap ₹3.1B

SB Shankara Building Products Limited SHANKARA · NSE
Price₹141.10
Fair Value₹34.84
Upside-75.3%
Quality41/100
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Weak Growth
Thin margins · 0.3% net margin
Low debt · negative free cash flow
Trails peers (4/13)
Narrow moat 21/100
Evidence: Medium Range ₹19.56 – ₹43.55 Share as image

Fair value as of: Aug 13, 2026

From 14 valuation models · updated 4 days ago

Share price +1.0% over the past month.

Below-average quality, and screening another 75% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹43.55). The favourable scenario is already priced in.
  • Weak quality (41/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (₹19.56 to ₹43.55) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹1,196 ₹99.97 Fair Value ₹34.84 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹99.97 – ₹1,196 · fair‑value band ₹19.56 – ₹43.55 · the ₹141.10 price screens above the ₹34.84 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Shankara Building Products Limited (SHANKARA) currently trades at ₹141.10, while our model-based Fair Value estimate is ₹34.84, implying the stock looks roughly 75.3% overvalued today. The Quality Score stands at 41/100 (below-average quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Shankara Building Products Limited generated revenue of ₹13.6B at a net margin of 0.3%. Revenue declined 79.2% year over year. It earns a return on equity of 0.9%. Net debt stands at ₹1.8B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹19.56 (bear case) to ₹43.55 (bull case); at ₹141.10, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Consumer Cyclical peers we cover trades at -21% fair-value upside, at -75%, SHANKARA screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹124.37 ₹116.38 ₹82.01 76
ROIC Compounder ₹44.44 ₹51.12 ₹56.88 72
Gordon GGM ₹26.33 ₹33.57 ₹40.80 70
All 14 models by family
Earnings-Based
Graham-Dodd ₹10.77 ₹19.04 ₹23.41 54
EPV ₹44.44 ₹51.12 ₹56.88 59
Dividend Discount
Gordon GGM ₹26.33 ₹33.57 ₹40.80 70
DDM Multi-Stage ₹26.33 ₹35.25 ₹45.67 61
Multiples
P/E Multiple ₹26.13 ₹34.84 ₹43.55 63
P/S Multiple ₹20.19 ₹26.92 ₹33.65 58
P/B Multiple ₹20.19 ₹26.92 ₹33.65 55
EV/EBIT ₹87.11 ₹115.43 ₹143.75 53
EV/EBITDA ₹89.30 ₹118.35 ₹147.40 54
EV/Revenue ₹59.42 ₹83.97 ₹108.51 43
Asset-Based
NCAV (Graham) ₹92.23 ₹123.59 ₹184.46 50
Economic Profit
Residual Income ₹124.37 ₹116.38 ₹82.01 76
ROIC Compounder ₹44.44 ₹51.12 ₹56.88 72
Growth Earnings
Growth-Adj P/E ₹18.42 ₹26.31 ₹34.21 68

Widest divergence: Asset-Based (₹123.59) versus Earnings-Based (₹19.04). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹13.6B
Revenue growth (YoY) -79.2%
Net margin 0.3%
Return on equity 0.9%
Free cash flow −₹1.8B FY2026
P/E ratio 89.3
More key figures
Operating margin 5.9%
EPS (TTM) ₹1.58
EPS growth (YoY) -75.7%
Net debt ₹1.8B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 40 · Market factors (momentum, volatility) 38

Profitability 33
Margins and returns on capital today
Quality Growth 17
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 55
Balance sheet, leverage, solvency risk
Investment 95
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 51
Price trend over the last 3–12 months (market factor)
52W Momentum 2
Distance to the 52-week high (market factor)
Net Issuance 70
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Shankara Building Products Limited operates as a retailer of home improvement and building products in India. The company offers structural steel products, cement, TMT bars, hollow blocks, pipes and tubes, roofing solutions, welding accessories, primers, solar heaters, fittings, plumbing products, tiles, sanitary ware, water tanks, plywood, kitchen sinks, …

Full company description

Shankara Building Products Limited operates as a retailer of home improvement and building products in India. The company offers structural steel products, cement, TMT bars, hollow blocks, pipes and tubes, roofing solutions, welding accessories, primers, solar heaters, fittings, plumbing products, tiles, sanitary ware, water tanks, plywood, kitchen sinks, and lighting, flooring, electricals, interior-exterior finishing, and other allied products. It also processes roofing sheets, steel pipes and tubes, cold rolled strips, and color coated roofing products, as well as operates as a general hardware and wholesale trader. In addition, the company offers modular kitchens, wardrobes, accessories, system aluminum windows and doors, kitchen sinks, faucets, and veneers; ACP and cladding, paints, and flooring solutions; and electrical wires and cables, electrical fittings and switches, and fans and exhaust fans. The company operates under the Taurus, Vaigai Sanitation, Fotia Ceramica, Ganga, and Vishal Precision Tubes brand name. It serves homeowners, architect, contractors, interior designers, developers, plumbers, and electricians. The company was formerly known as Shankara Infrastructure Materials Limited and changed its name to Shankara Building Products Limited in July 2006. Shankara Building Products Limited was incorporated in 1995 and is headquartered in Bengaluru, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Shankara Building Products Limited reported revenue of ₹13.6B in FY2026 versus ₹24.1B in FY2022, a compound −13.3%/yr. Reported net income was ₹38.4M in FY2026, compounding −42.2%/yr from FY2022.

Growth Quality 14/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
₹13.6B
Latest YoY
−76.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−30.3%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−7.7%
Avg. growth/yr (14Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.3%
Revenue −13.3%/yr
FY22 ₹24.1B
FY23 ₹40.3B
FY24 ₹48.3B
FY25 ₹57.0B
FY26 ₹13.6B
Net income −42.2%/yr
FY22 ₹343M
FY23 ₹631M
FY24 ₹811M
FY25 ₹774M
FY26 ₹38.4M
Character of growth · EPS growth decomposed (2015-2026) +1.9 % p.a.
Revenue per share +6.2 pp

of which total revenue +7.3 pp · buybacks/dilution −1.1 pp

EBIT margin −1.2 pp
Tax rate +1.5 pp
Residual (interest, one-offs) −4.6 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

SHANKARA screens 75% overvalued. Compare with The Home Depot, Inc →

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Cite: Fair Value Calculator (2026). "Shankara Building Products Limited Fair Value". https://www.fairvalue-calculator.com/stock/SHANKARA

Peer Group

Home Improvement Retail · 36 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 41 · Bottom 25%
Fair Value upside −75% · Bottom 25%
Return on equity (TTM) 1% · Bottom 25%
Return on assets 2% · Bottom 25%
Net margin (TTM) 0% · Bottom 25%
Operating margin (TTM) 6% · Above median
Revenue growth -79% · Bottom 25%
Dividend yield (TTM) 2.3% · Below median
Debt / equity 0.01× · Lower than 75% of peers

Valuation Multiples vs Home Improvement Retail median · lower = cheaper

P/E (TTM) 89.3× · Pricier than 75% of peers
P/B 0.70× · Cheaper than 75% of peers
P/S (TTM) 0.23× · Cheaper than 75% of peers
EV/EBITDA 9.6× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 27
FUTURE 0 · sector 11
PAST 4 · sector 32
HEALTH 100 · sector 95
DIVIDEND 46 · sector 54

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Home Improvement Retail stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
The Home Depot, Inc HD $354.48 $236.85 -33%
Lowe's Companies, Inc LOW $215.97 $186.32 -14%
Wesfarmers Limited WES A$88.48 A$50.50 -43%
Floor & Decor Holdings FND $59.33 $27.30 -54%
Mr D.I.Y. Group 5296 1.52 MYR 1.47 MYR -3%
Home Product Center Public Company HMPROR 6.70 THB 6.31 THB -6%
Siam Global House Public Company GLOBAL 7.50 THB 5.96 THB -21%
Haverty Furniture Companies, Inc HVT $28.44 $23.32 -18%
Dohome Public Company DOHOME 3.78 THB 2.75 THB -27%
Test-Rite International Co 2908 21.85 TWD 4.97 TWD -77%

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Frequently asked questions

Is Shankara Building Products Limited (SHANKARA) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹34.84 versus a price of ₹141.10, about −75% (overvalued).
What is the fair value of SHANKARA?
Our model-based fair value for Shankara Building Products Limited is ₹34.84 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹141.10.
What is the quality score of SHANKARA?
Shankara Building Products Limited has a Quality Score of 41/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Shankara Building Products Limited (SHANKARA)?
Shankara Building Products Limited reported trailing-twelve-month revenue of about ₹13.6B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of SHANKARA?
The net profit margin of Shankara Building Products Limited is about 0.3%, meaning it keeps roughly 0.3% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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