Shankara Buildpro (BUILDPRO)

FairStock Score: 34/100 — RISKY

Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Strong growth momentum: sales up 29.10% and profit up 47.84% year-on-year.
• Low leverage: debt-to-equity of 0.19 indicates a financially conservative balance sheet.
• Reasonable PEG ratio of 0.70 suggests growth is not fully priced in relative to earnings expansion.
• Piotroski F-Score of 6/9 points to moderately healthy fundamentals.
• Promoter holding at 40.18% aligns some insider interest with shareholders.

Concerns

• Extremely thin net margin: latest quarter net profit of ₹25 Cr on sales of ₹1,666 Cr is only ~1.5%.
• High valuation on book: P/B of 5.81 leaves little asset-based margin of safety.
• No dividend yield (0.00%), so total return depends solely on share price appreciation.
• ROE and ROCE are stated as N/A or 0, which is concerning for assessing capital efficiency.

AI Analysis

Let me look at Shankara Buildpro as I would any business. It is a speciality retailer, and retail is a tough business. The numbers tell me growth is strong: sales up 29.10% and profits up 47.84%. At ₹1,148.55, the stock trades at a P/E of 27.08, which seems rich on the surface. But the PEG ratio of 0.70 suggests that if growth continues, the price may not be unreasonable. Still, I must be cautious. The latest quarter shows sales of ₹1,666 Cr but net profit of only ₹25 Cr — that is a net margin of roughly 1.5%. This is a razor-thin margin business, and in retail, thin margins leave little room for error. The balance sheet looks sound: debt-to-equity is just 0.19, so they are not leveraged dangerously. Book value is ₹197.60, and the price-to-book of 5.81 is high, meaning I am paying a lot for the assets relative to what is on the books. Promoter holding of 40.18% is decent, but not outstanding. There is no dividend, so my return depends entirely on capital appreciation. The FairStock Score is a mixed 35/100, and the Piotroski F-Score of 6/9 is okay but not excellent. In Graham's language, I want a margin of safety. At this price, I do not see a clear one. This is a fast grower, but in a low-margin, competitive industry. I would wait for a better price or evidence that margins are structurally improving before committing capital.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer