Madhu Kela Singularity Equity Fund Picks Stake in Shankara Building Products via ₹42.6 Cr Block Deal — Stock Soars to 52-Week High
Madhu Kela: In a move that has stirred considerable excitement among market participants, ace investor Madhu Kela’s Singularity Equity Fund I has picked up a sizable stake in Shankara Building Products, a prominent small-cap company in the home improvement retail space. The acquisition, valued at ₹42.6 crore, was executed through block deals on June 9, indicating renewed investor interest in the company’s future prospects.
🔍 Block Deal Details
According to data from the Bombay Stock Exchange (BSE), Singularity Equity Fund I acquired 4.6 lakh shares at ₹926.1 per share, amounting to a total investment of ₹42.6 crore. Shankara Building Products, operating under the brand name “Shankara Buildpro,” is a leading organized retailer of building materials across India.
The fund’s stake acquisition coincided with a significant stake sale by the company’s promoter and Managing Director, Sukumar Srinivas, who offloaded a 7.8 percent stake via open market transactions worth ₹176 crore. Srinivas sold 19 lakh shares at an average price of ₹926.1, reducing promoter holding from 49.25% to 41.41%.
🧠 Big Names Join the Party
Along with Madhu Kela’s fund, other marquee investors like Chartered Finance and Leasing, Ace Infracity Developers, Sageone Investment Managers LLP, and foundations such as Riti Foundation, RR Foundation, S R Foundation, and Swati Foundation also participated in these block deals. This shows strong institutional and HNI interest in the company’s growth story.
📊 Strong Q4, Mixed Annual Performance
Shankara reported a robust 17.46% YoY increase in net profit for Q4FY25, clocking ₹28.45 crore compared to ₹24.22 crore in the same quarter of the previous fiscal. Revenue surged 19.08% to ₹1,639.16 crore, up from ₹1,376.55 crore in Q4FY24.
However, the annual numbers painted a more subdued picture. Despite 17.98% revenue growth to ₹5,696.69 crore for FY25, net profit dipped 4.60% to ₹77.40 crore, down from ₹81.13 crore in FY24. The dip was primarily due to margin pressures stemming from lower realizations in the steel sector.
Vice President Dhananjay Mirlay Srinivas said during the earnings call that volume growth of 30% was achieved, with segments like structural steel tubes and pipes witnessing resilient demand—allowing the company to sustain its market momentum despite sectoral challenges.
📈 Stock Performance: A Stellar Run
Following the block deals, Shankara Building Products’ shares rallied 6.7%, hitting a new 52-week high of ₹1,056.60. On June 11, the stock extended its gains by another 2.6%, touching an intraday high of ₹1,024. This performance marks a 130% surge from its 52-week low of ₹444.40, recorded in October 2024.
The stock has been on a four-month winning streak:
- June 2025 (so far): +23%
- May 2025: +36.5%
- April 2025: +5.4%
- March 2025: +2.5%
Despite facing double-digit corrections in January and February, the overall uptrend remains strong.
📉 Financial Ratios of Shankara Building Products
| Metric | Value |
|---|---|
| Market Capitalization | ₹2,436 Cr |
| Current Market Price | ₹1,004 |
| 52-Week High / Low | ₹1,065 / ₹444 |
| Price-to-Earnings (P/E) | 31.5 |
| Book Value | ₹358 |
| Dividend Yield | 0.30% |
| Return on Capital Employed (ROCE) | 16.8% |
| Return on Equity (ROE) | 9.29% |
| Face Value | ₹10 |
🤔 What Does This Mean for Investors?
The entry of a seasoned investor like Madhu Kela signals confidence in Shankara’s long-term potential, especially in the fast-evolving home improvement and building material retail segment. The presence of other institutional and HNI investors further boosts credibility. While near-term volatility cannot be ruled out due to promoter stake dilution, the underlying business fundamentals and long-term growth prospects remain intact.
❓ Q&A: All You Need to Know About the Deal
Q1: Who acquired a stake in Shankara Building Products?
A: Madhu Kela’s Singularity Equity Fund I acquired 4.6 lakh shares worth ₹42.6 crore via block deals.
Q2: Why is this transaction significant?
A: It reflects growing institutional interest and long-term confidence in Shankara’s business, especially with several top-tier investors participating.
Q3: What does Shankara Building Products do?
A: It is a leading organized retailer of home improvement and building products in India, operating under the brand “Shankara Buildpro.”
Q4: How did the company perform financially in Q4FY25?
A: Net profit rose 17.46% YoY to ₹28.45 crore and revenue increased 19.08% to ₹1,639.16 crore.
Q5: What are the key financial ratios?
A: P/E is 31.5, ROCE at 16.8%, ROE at 9.29%, and dividend yield is 0.30%.
Q6: How has the stock performed recently?
A: It has surged ~130% from its 52-week low, with strong monthly gains for four consecutive months.
Conclusion:
With a strong Q4, growing investor interest, and strategic stake accumulation by seasoned investors like Madhu Kela, Shankara Building Products is clearly a small-cap stock to watch. Investors may consider keeping this stock on their radar, though due diligence and risk assessment remain essential before making any investment decision.
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