 "Shankara Building hits new high; stock rallies 58% in two weeks")
Shares of Shankara Building Products continued their upward journey, hitting a new high of Rs 2,346, up 6% on the BSE in an otherwise subdued market.
The stock has rallied 58% in the past two weeks from Rs 1,484 on November 21, as compared to 2% decline in the S&P BSE Sensex.
On Monday, the company said its board will meet on Tuesday, December 12, 2017 to consider and review working capital requirements and realignment of working capital limits and other matters.
Last week, it had opened two additional stores under the “Shankara Buildpro” brand in Vijayawada and Bangalore.
Since listing on April 5, 2017, the stock has zoomed 266% from Rs 633 against 9.4% rise in the benchmark index. Shankara Building Products had raised Rs 350 crore through initial public offer (IPO), by issuing shares at price of Rs 460 per share.
According to Emkay Global Financial Services, Shankara is a good proxy to play on the growing demand for organized home improvement and building material space. Its retail business has an excellent operating matrix backed by clear focus on cost.
Lowering of GST rates and fulfilling pent-up demand is likely to drive growth in the coming quarters. As the focus remains on the Retail business, the company plans on adding 15-20 stores each year and expects the Retail contribution to sales to touch 70% in the next 3-4 years.
The stock has rallied 58% in the past two weeks from Rs 1,484 on November 21, as compared to 2% decline in the S&P BSE Sensex.
On Monday, the company said its board will meet on Tuesday, December 12, 2017 to consider and review working capital requirements and realignment of working capital limits and other matters.
Last week, it had opened two additional stores under the “Shankara Buildpro” brand in Vijayawada and Bangalore.
Since listing on April 5, 2017, the stock has zoomed 266% from Rs 633 against 9.4% rise in the benchmark index. Shankara Building Products had raised Rs 350 crore through initial public offer (IPO), by issuing shares at price of Rs 460 per share.
According to Emkay Global Financial Services, Shankara is a good proxy to play on the growing demand for organized home improvement and building material space. Its retail business has an excellent operating matrix backed by clear focus on cost.
Lowering of GST rates and fulfilling pent-up demand is likely to drive growth in the coming quarters. As the focus remains on the Retail business, the company plans on adding 15-20 stores each year and expects the Retail contribution to sales to touch 70% in the next 3-4 years.
