Review

SHANKARA BUILDING PRODUCTS LTD. 

Ticker : 540425
FV: ₹ 10
52-Week H/L: ₹ 843/359.50

We recommended Shankara Building Products Ltd. in volume no. 38, issue no. 18 (dated February 21, 2022) when the scrip was trading at Rs 706. On the consolidated quarterly front, the company posted net sales of Rs 584.95 crore for Q3FY22, which improved 4.06 per cent from Rs 562.12 crore reported for Q3FY21. Operating profit declined 60.17 per cent to Rs 15.28 crore in Q3FY22 from Rs 38.36 crore posted in Q3FY21. The net profit was recorded at Rs 3.52 crore in Q3FY22 from Rs 21.81 crore in Q3FY21, plunging 83.86 per cent. Recently, the company announced that a wholly-owned subsidiary of APL Apollo Tubes namely, APL Apollo Mart has bought 10,00,000 equity shares of the company from the promoter, accounting for 4.38 per cent of the total paid-up capital. Post this development, the stock hit a 52-week high price of Rs 822.25. Besides, the share has gained strength in the last one month, delivering returns of 21.66 per cent. Hence, we recommend our investor-readers to BOOK PROFIT at Rs 840.30 per share with a gain of 19.02 per cent.