Shankara Building Products Limited - Thrust on retail to boost potential: Angel Broking

Views of Mr. Amarjeet Maurya (Sr. Equity Research Analyst- Mid Caps, Angel Broking):

"Considering the company's strong retail presence, diversified product offering, substantial same store sales growth (last five years average growth is 23%) and robust retail revenue of ~29% over FY2012-16, we expect that SBPL to witness higher revenues from its retail business going ahead. At the upper end of the price band, the pre issue P/E multiple works out to be 18.2x of its annualized 9MFY17 numbers. On EV/Sales, the issue is valued at 0.6x of annualized 9MFY17 numbers. Considering its long term prospects and reasonable valuation, we recommend Subscribe rating on this issue."

Source : Equity Bulls

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