linkedin
BROUGHT TO YOU BY
Exclusive Access, Inclusive Growth

WELCOME TO ET PRIME

BROUGTH TO YOU BY
Exclusive Access, Inclusive Growth
ET Prime
Under the lens

From INR460 a share to INR2,365, and then a tumble: deconstructing the undoing of Shankara Buildpro

After a stellar listing and an impressive bull run, the stock of the home-improvement and building-products retailer corrected sharply. The company is grappling with a slew of issues, including the business model itself, swings in strategy, dissonance between numbers and the situation on the ground besides questionable corporate governance.
font size
FONT SIZE
save
SAVE
saved
SAVED
Gift this article
GIFT ARTICLE
By
21 Nov 2019 10 Mins Read 0 comment
A construction worker at a site Getty Images
A construction worker at a site
Shankara Building Products was supposed to be India’s Home Depot, a one-stop shop for home-improvement and building-material products. Investors saw in the company a convergence of two themes — home-construction products and retail. Shankara had its IPO around the same time as DMart and got listed two weeks after the grocery retailer. Both DMart and Shankara are organised retail
were coming from manufacturing, and it had debt,” Bhasin of Ambit says. The Street was surer of Shankara’s business model than the company itself. This exuberance took the stock to sky-high prices, but soon reality kicked-in and brought it back to earth. Building its way back will be a daunting task. ( Graphics by Mohammad Arshad)
Shankara Building Products was supposed to be India’s Home Depot, a one-stop shop for home-improvement and building-material products. Investors saw in the company a convergence of two themes — home-construction products and retail. Shankara had its IPO around the same time as DMart and got listed two weeks after the grocery retailer. Both DMart and Shankara are organised retail were coming from manufacturing, and it had debt,” Bhasin of Ambit says. The Street was surer of Shankara’s business model than the company itself. This exuberance took the stock to sky-high prices, but soon reality kicked-in and brought it back to earth. Building its way back will be a daunting task. ( Graphics by Mohammad Arshad)

The latest from ET Prime is now on Telegram. To subscribe to our Telegram newsletter click here.

Gift this story

YOU CAN GIFT 0 MORE STORIES THIS MONTH

Maximum 10 Email IDs allowed

300 characters remaining

Gift Sent Successfully

Limit Reached
Limit Reached

You’ve gifted all the 0 articles from your monthly gift bucket!

Please come back next month.

0 more articles will be waiting for you in your gift bucket.

Current Edition

Is mid-cap the big opportunity in the current market crash?
Investing

Is mid-cap the big opportunity in the current market crash?

Sixteen of the top 25 mid-cap stocks have performed better than the 200-day moving average. As the Covid-19 pandemic takes a heavy toll on the market, the Nifty Midcap 100 Index and the Nifty 50 are equally impacted. But many investors believe they can do better by investing in mid-cap stocks for higher returns.

There is no playbook on resilience
Strategy

There is no playbook on resilience

Trust the process. In times like these, belief in our own abilities and those around us becomes paramount, says Albinder Dhindsa, co-founder and CEO of leading e-grocery player Grofers.

[[^message]]

Result

[[/message]] [[#message]]

[[message]]

[[/message]]