Shankara Building zooms 94% in 3 months as FPIs increase stake in company

The stock hit a new high of Rs 1,572, rallied 94% from Rs 811 on June 30, 2017 against 2% rise in the Sensex

Shankara Building Products hit a new high of Rs 1,572, up 9% on BSE, extending past three months rally, after the foreign portfolio investors (FPIs) increased their stake in the company in July-September (Q2FY18) quarter.

The stock is trading at its highest level since listing in April this year. In past three months, it has outperformed the market by surging 94% from Rs 811 on June 30, 2017, as compared to 2% rise in the S&P BSE Sensex.

The FPIs which were net sellers in Indian equity markets in Q2FY18 in stock exchanges, have hiked their stake in the company.

FPIs total holding in Shankara Building Products increased by 3.39 percentage points to 10.66% in Q2FY18. They hold 7.27% stake in the company at the end of June quarter (Q1FY18), according to the latest shareholding pattern with the stock exchanges.

Mutual funds reduced their holdings in the company by 2.89 percentage points to 9.43% in Q2FY18 from 12.24% in Q1FY18. While, individual shareholders stake declined to 10.68% from 11.55%, data shows.

Since listing on April 5, 2017, the stock price of the company zoomed 148% from Rs 633, as compared to 6% rise in the benchmark index. It soared 242% against its initial public offer (IPO) price of Rs 460 per share.

Shankara Building Products is offering end to end home improvement & building material as well as solutions.

According to the company, the government’s focus on various measures to improve the confidence of individual home buyer coupled with increasing affinity to deal with organized sector will aid the company’s growth in times to come.