Shankara Building (SHANKARA)

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

Key Financials

Strengths

• Trades at a steep discount to book value: P/B of 0.47, with price ₹120.85 versus book value ₹258.47.
• Conservative balance sheet: Debt/Equity of 0.14 indicates low financial leverage.
• ROCE of 16.76% suggests reasonably efficient use of capital even if ROE is moderate.
• Dividend yield of 2.77% provides some shareholder return during the downturn.
• Promoter holding at 40.18% gives moderate alignment with minority investors.

Concerns

• Sales collapsed 70.75% and profit fell 91.69%; latest quarter net profit is only ₹1 Cr on sales of ₹420 Cr.
• Piotroski F-Score of 3/9 indicates weak overall financial health.
• 52-week range from ₹98.25 to ₹1160.00 shows extreme share-price volatility and a severe market de-rating.
• The low P/E of 10.42 may be misleading if earnings remain depressed; there is no clear sign of recovery yet.

AI Analysis

When I look at Shankara Building, the first thing I see is a business in deep trouble. Sales have fallen 70.75% and profits are down 91.69%. In the latest quarter, sales were ₹420 Cr but net profit was just ₹1 Cr. This is not a franchise with pricing power; speciality retail is competitive and this company appears to have no wide moat. The Piotroski F-Score of 3/9 confirms weak fundamentals. Price is ₹120.85, market cap is ₹262 Cr, while book value is ₹258.47. So the stock trades at 0.47 times book value. A low P/B only matters if book value is real and earning power recovers. ROE is a modest 8.50%, but ROCE is 16.76%, which shows decent capital efficiency. Debt-to-equity is just 0.14, so the balance sheet is conservative and the company is not drowning in leverage. The dividend yield of 2.77% offers some comfort while waiting. Promoter holding of 40.18% is reasonable but not exceptional. The 52-week range, from ₹98.25 to ₹1160.00, tells me the market has violently repriced this stock. The trailing P/E of 10.42 looks cheap, but with quarterly profits of only ₹1 Cr, earnings are too depressed to rely on. I would not call this a wonderful business. It looks more like a potential asset play: buying rupees of book value at a discount, but only if the deterioration stops. I need evidence of sales stabilising, margins recovering, and book value staying intact before I would act.

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