Equirus Securities has an add call on Shankara Building Products with a target price of Rs 1,859.

The current market price of Shankara Building Products is Rs 1,711.15.

Time period given by the brokerage firm is 20 Months when Shankara Building Products price can reach defined target.

"Shankara Building Products (Shankara) reported a 16 per cent yoy growth in its 3QFY18 revenues to Rs 6.3bn driven by strong retail growth of 32 per cent yoy. EBITDA growth at 13 per cent yoy was driven by margin improvement in the retail segment. After a few sluggish quarters, retail growth has rebounded on higher store addition, better SSSg and acquisition of Vaigai Sanitation stores. Growth should improve further as construction activity picks up and liquidity improves. Revenue mix changes towards high-margin retail and an improvement in the processing segment should support (a) margin expansion, (b) 16 per cent/30 per cent EBITDA/PAT CAGR over FY17-FY20E, and (c) a nearly 400bps RoE expansion to 22 per cent. We roll over to a September 2019 TP of Rs 1,859 (from a March 2019 TP of Rs 1,564 earlier)," Equirus Securities said in a report.