Interesting developments happening here
Non-steel products sales will help in transitioning Shankara from steel distributor to “Home Improvement” player
Higher EBITDA margins of roughly 4-5% in the medium term and PAT of around 2.5% will yield around 28% ROC
Manufacturing operations will be separated( sub 10% margins and ROC), which will boost Shankara Buildpro valuation
Manufacturing operations post spin off might surprise with average return metrics thus unlocking some value there as well
Growth guidance has been revised downwards by 5%, but if they can consistently grow in the range of 20-25%, Shankara might create decent value going forward
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