CRISIL said that the ratings continue to factor in the group's established market position and extensive experience of the promoter in the building material distribution and retailing businesses, the diversified product offerings, longstanding association with vendors, and moderate financial risk profile.

These strengths are partially offset by susceptibility to economic cycles and sharp variation in raw material prices.

Shankara Building Products operates over 90 retail showrooms in southern and western India, where it sells building and home improvement products for many renowned brands. Further, the group operates in-house pipe and colour-coated roofing sheet processing facilities through wholly owned subsidiaries - Taurus, Vishal, and Centurywells.

The company reported 73.02% jumped in consolidated net profit to Rs 15.52 crore 49.70% increase in sales to Rs 906.72 crore in Q2 FY23 over Q2 FY22.

The scrip rose 0.36% to currently trade at Rs 661.55 on the BSE.