Shankara Building climbs over 2% as Amansa Holdings buys shares

Shankara Building Products climbed over 2 per cent in morning trade on Tuesday after Amansa Holdings purchased bulk shares of the company through open market transactions in the previous trading session.

The scrip opened at Rs 1,776.20 before hitting high and low of Rs 1,842 and Rs 1,775.05, respectively, eventually closing at Rs 1,785.95, up 2.06 per cent on BSE.

Amansa Holdings purchased 1,47,216 shares of Shankara Building Products at Rs 1,755 per share in a bulk deal on the BSE on March 12. It also bought 2,15,000 shares at Rs 1,755 in a bulk deal on the National Stock Exchange (NSE).


For the quarter ended December 2017, consolidated net profit of Shankara Building Products advanced 28.90 per cent to Rs 17.65 crore on 15.50 per cent growth in net sales to Rs 624.62 crore.

The company is one of the leading organised retailers of home improvement and building products in India based on number of stores, operating under the brand name 'Shankara Buildpro'.

Brokerage firm Equirus has ‘Buy’ rating on Shankara with a target price of Rs 1,859.

“Growth should improve further as construction activity picks up and liquidity improves. Revenue mix changes towards high-margin retail and an improvement in the processing segment should support margin expansion, 16 per cent/30 per cent EBITDA/PAT CAGR over FY17-FY20E, and a nearly 400bps RoE expansion to 22 per cent,” the brokerage house said.