Shankara Building Products Ltd IPO Message Board (Page 79)

Great i just love when people have genuine question in regards with investment big thumbs up
1.U R 100% right Real estate market is really bad phase from 2012 to 2016 sales have these lines to retail high margin business compare to channel line and B2B. So as i said before this company has seen the worst moving to organised renovation business will be great for bottom line and topline equally. That is reason i have only taken 13% CAGR when the real growth rate in NP is 26%

2. those r standalone PAT before the move to retail stores as explained before this 100 plus stores is have a great impact on the bottom line Check page 49 on RHP for the CORRECT CONSOLIDATED PROFIT

3. DEBT TO EQUITY RATIO IS ALWAYS HIGH IN SUCH KIND OF BUSINESS REASON BEING MOST OF THIS DEBT IS WORKING CAPITAL. Let me explain with an example for business like SBP. theses business have very high top line (Steel suppliers cement suppliers) and it normally for this business to have credit line of 21 days to 3 months depending on client cash sales in this kind of business is very less all in credit we know topline for 2016 is around 2100 crs BTW just little info on SBP it one of the 300 top private company with Topline in excess of 2000 Crs. Let get back to DER presently company total debt is around 250 Crs we also know topline is 2100 crs so average sales per day is approx 6 days so if give line of credit for 50 days i need 300 Cr as my OD balance however total debt is only 250 which majority is OD so nothing to worry business line this buy for cash and sell for credit so DER is not a good indicator

4. not sure how u got that figure on page 70 of RHP it says NAV is approx Rs157 multiple that with total outstanding shares which 2,28,50000 shares approx i get 350 cr approx asking 1050

So based on it business model i see big future for SBP So

I AM APPLYING FOR THIS ISSUE

GREAT BUSINESS MODEL GREAT MANAGEMENT AND BIG UNTAPPED MARKET