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Report as on 5 July 2023 at 01:08 AM

NEGATIVE
RESULTS IN MAR 23
Very Expensive BIGBLOC
Valuation
Const.
Low (0%)
Domestic Mutual Fund Holdings Sell

CMP: 162.15
STOCK INFO:
BSE – 540061/ NSE – BIGBLOC
Market Cap - Small Cap (Rs. 1,137 cr)
Sector – Real Estate
52 w H/L (Rs.) – 179.3/99.6
Dividend Yield: 0.12%
Debt Equity: 1.14%
Return on Equity: 40.25%
Price to Book: 15.44

www.marketsmojo.com
BIGBLOC Const.
CMP: 162.15 42 Sell
Report as on 5 July 2023 at 01:08 AM
Strong Sell Sell Hold Buy Strong Buy

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WHY IT’S A SELL? IS THIS STOCK FOR YOU?


High Risk, High Return (1 Year)
The company has declared negative results in
Mar'2023 after 9 consecutive positive quarters Absolute Risk Volatility
-PAT(Q) At Rs 5.62 cr has Fallen at -24.9 % Adjusted
- OPERATING PROFIT TO INTEREST (Q) Lowest at 8.35 BIGBLOC Const. 55.32% 1.15 48.23%
times
SENSEX 23.00% 1.95 11.81%
-NET SALES(Q) Lowest at Rs 46.55 cr
With ROCE of 27.3, it has a Very Expensive How much should you sell? - All quantity irrespective of
whether you are making profits or losses
valuation with a 7.6 Enterprise value to Capital
When to re-enter? - We will constantly monitor the
Employed company and review our call based on new data
-The stock is trading at a discount compared to its
average historical valuations RETURNS SUMMARY (Price + Dividend)
-Over the past year, while the stock has generated a The stock gave a total returns of 55.51% in the last 1 year
return of 55.32%, its profits have risen by 88.6% ; the Outperforming Sensex returns of 23.00%
PEG ratio of the company is 0.4 4000%

Despite the size of the company, domestic


mutual funds hold only 0% of the company 2000%

-Domestic mutual funds have capability to do in-


depth on-the-ground research on companies- their 0%

small stake may signify either they are not


comfortable at the price or the business -2000%
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BIGBLOC Construction Ltd SMLCAP


WHAT ARE OTHER FACTORS?
Healthy long term growth as Operating profit has Investors Returns (3 years) –
grown by an annual rate 99.05%
Period 6M 1Y 2Y 3Y
Stock (%) 18.79% 55.51% 697.32% 2539.53%
Sector (%) 19.70% 19.70% 49.76% 171.16%
Sensex (%) 7.95% 23.00% 24.76% 81.78%

DO YOU HAVE OTHER BETTER CHOICES?


Within same sector Within same market cap
Welspun Enterprises Ltd GNA Axles Ltd.
Get Verdict Report Get Verdict Report

MOJO PROFESSIONAL 1
BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

BEFORE PROCEEDING AHEAD


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PAID SUBSCRIBERS of www.marketsmojo.com

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generated on 5th July, 2023 at 01:08 AM, and may
not be valid if you are reading it later.

Some factors/data, as well as the buy/sell/hold call


might have changed.

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MOJO PROFESSIONAL 2
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BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

CAPITAL STRUCTURE

AVERAGE DEBT COMPANY WITH A DEBT


TO EQUITY RATIO (AVG) AT 1.14 TIMES
Total Debt Debt to Equity Ratio
Average Debt to Equity Ratio Mar 2023 87.29 1.45
Company’s average Debt to Equity ratio over the past few years Mar 2022 47.13 1.59
is average at 1.45 times
Mar 2020 55.86 1.64
No clear trend in Debt to Equity Ratio numbers Mar 2019 34.02 1.06

Total Debt Debt to EBITDA Ratio


High Debt to EBITDA Ratio Mar 2023 87.29 3.34
Company’s average Debt to EBITDA ratio over the past few Mar 2022 47.13 3.88
years is high at 6.83 times

No clear trend in Debt to EBITDA Ratio numbers

Total Debt EBIT to Interest


An average EBIT to Interest Mar 2023 87.29 4.76
Company has an average EBIT to Interest ratio of 4.76 times Mar 2022 47.13 2.82
EBIT to Interest has seen a high growth of 100% over previous
period

MOJO PROFESSIONAL 3
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BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

FINANCIAL TREND

THE COMPANY HAS DECLARED NEGATIVE


RESULTS IN MAR'2023 AFTER 9
CONSECUTIVE POSITIVE QUARTERS

Near term PAT trend is very 8.43 8.57

-24.9% negative 7.48 7.7

PAT (Rs Cr) 5.62


PAT Growth At Rs 5.62 cr has Fallen at -24.9 %
Year on Year (YoY)

Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023

Near term sales trend is negative


Rs 46.6 Net Sales (Rs Cr)
Lowest at Rs 46.55 cr
52.99 55.54
48.48 49.54
46.55
cr in the last five quarters
Net Sales -
Quarterly

Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023

The company's ability to manage 17.2

8.4 times interest payments is deteriorating


12.86 12.2
Operating Profit to Interest
Interest Lowest at 8.35 times
9.78
8.35
Coverage Ratio - in the last five quarters
Quarterly

Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023

MOJO PROFESSIONAL 4
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BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

FINANCIAL TREND

Rising interest cost signifies 1.27

55.4% increased borrowings 1.1 1.08 1.09

Interest Paid (Rs cr)


Interest Growth Highest at Rs 1.27 cr
in the last five quarters and Increased by 16.51 %
(QoQ)
0

Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023

Near term Operating Profit trend 13.89


13.3

is negative 12.21

Rs 10.6 cr 10.76 10.61

Operating Profit (Rs Cr)


Operating Profit Lowest at Rs 10.61 cr.
- Quarterly in the last five quarters

Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023

Near term PBT trend is negative


Rs 7.7 cr PBT less Other Income (Rs Cr) 10.02
11.31
10.71
Lowest at Rs 7.74 cr. 8.12 7.74
PBT - Quarterly in the last five quarters

Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023

MOJO PROFESSIONAL 5
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BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

FINANCIAL TREND

Declining profitability; company


has created lower earnings for 1.19 1.21
Rs 0.8 cr shareholders
1.06 1.09

0.79
Earnings per
EPS (Rs)
Share (EPS) -
Lowest at Rs 0.79
Quarterly
in the last five quarters

Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023

Mar'23 Mar'22 Change%


Net Sales 46.6 53.0 -12.2%
Key Operating Profit (PBDIT) excl Other Income 10.6 10.8 -1.4%
Result Interest 1.3 1.1 15.5%
Highlights Exceptional Items 0.0 0.0
Consolidated Net Profit 5.6 7.5 -24.9%
Operating Profit Margin (Excl OI) 22.8 20.3 2.5%
Consolidate- figures in Rs
Cr

MOJO PROFESSIONAL 6
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BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

VALUATION

WITH ROCE OF 27.3, IT HAS A VERY


EXPENSIVE VALUATION WITH A 7.6
ENTERPRISE VALUE TO CAPITAL
EMPLOYED
Expensive

Very Expensive Ritesh Propertie

BIGBLOC
Sanmit Infra
Const.

valuation Valuation Ajmera Realty

as compared to its Fundamentals Capacit'e Infra.

Attractive
Weak Fundamental Strong

Very
Enterprise value to Capital Employed vs ROCE
40 20
Fundamental

Attractive

Valuation
20 10

0 0
as compared to its

3
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past valuations
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Company Valuation Price to Book PE Ratio PEG Ratio Dividend


Ratio Yield
Key
Valuation BIGBLOC Const. Very Expensive 15.2 37.7 0.4 0.1%
Multiples Sanmit Infra Very Expensive 44.6 274.1 0 0%
vs Peers Capacit'e Infra. Very Attractive 1.3 14.8 0.1 0%
Ajmera Realty Fair 1.7 18.1 0.3 0.6%
Ritesh Propertie Risky 10.3 -1199.7 0 0%

MOJO PROFESSIONAL 7
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BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

SHAREHOLDING

MUTUAL FUND HOLD ONLY 0% OF THE


COMPANY
Domestic mutual funds have capability to do in-
depth on-the-ground research on companies- their
small stake may signify either they are not
comfortable at the price or the business No holdings in Mutual Fund last few quarters

FIIs
0.05%
Shareholding Snapshot : Mar 23
Non Institution
Majority shareholders : Promoters
Pledged Promoter Holdings : None
27.67%

Mutual Funds : Held in 0.00 Schemes (0.00%)


Promoters
72.27% FIIs : Held by 1 FIIs (0.05%)
Promoter with highest holding : Mohit Yarns Limited (14.41%)
Highest Public shareholder : Nxt Fab Private Limited (4.66%)
Individual Investors Holdings : 15.94%

FII
0.06%

0.05%
holding has increased by 0.05%
0.04%
0.04%
Number of FIIs holding stake in the company has
decreased to 1 from 2
0.02%
0.02%

0.00% 0.00%
0%
Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023

MOJO PROFESSIONAL 8
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BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

FACTORS
WORKING
FOR THE COMPANY

MOJO PROFESSIONAL 9
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BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

GROWTH

HEALTHY LONG TERM GROWTH AS


OPERATING PROFIT HAS GROWN BY AN
ANNUAL RATE 99.05%

Net Sales of 19.0% CAGR 250Cr

19.0% Company has experienced an increase 200


200Cr
in its Net Sales in each of the past 4 175
CAGR consecutive years 150Cr
118
Company’s Net Sales growth has
95
increased in each of the past 4 100Cr
71
consecutive years
50Cr
Net Sales has seen a high growth of
14.29% over previous period
0Cr
Mar 2018 Mar 2019 Mar 2020 Mar 2022 Mar 2023

High Growth in Operating 60Cr

Profit of 99.1% CAGR


99.1% Company has experienced an increase
43

CAGR in its Operating Profit in each of the


40Cr

past 3 consecutive years


Company’s Operating Profit growth
21
20Cr
has increased in each of the past 3
consecutive years 8
5
4
Operating Profit has seen a high 0Cr
growth of 104.76% over previous Mar 2018 Mar 2019 Mar 2020 Mar 2022 Mar 2023
period

Net Profit of 131.3% CAGR 40Cr

131.3% Company has experienced an increase


in its Net Profit in each of the past 3 30Cr
30

CAGR consecutive years


Company’s Net Profit growth has 20Cr
16
increased in each of the past 3
consecutive years 10Cr

Net Profit has seen a high growth of 4


2
87.5% over previous period 1
0Cr
Mar 2018 Mar 2019 Mar 2020 Mar 2022 Mar 2023

MOJO PROFESSIONAL 10
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BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

TECHNICALS

STOCK IS TECHNICALLY IN A MILDLY


BULLISH RANGE
Mildly Bullish Daily Moving Averages indicating near term price strength
Current Price 50 Day Moving Average 200 Day Moving Average

162.15 155.02 142.85

Factors with upward momentum


Indicator Technical Trend
MACD Bullish (weekly)
Bollinger Band Mildly Bullish (weekly)
Bollinger Band Mildly Bullish (monthly)
KST Bullish (weekly)
OBV Mildly Bullish (weekly)

Consistent Returns over the last 3 years


3 Months 1 Year 3 Years

30.87% 55.32%
2528.04%

13.14% 22.43%

90.44%

Stock BSE 500 Stock BSE 500 Stock BSE 500

MOJO PROFESSIONAL 11
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BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

RETURNS

CONSISTENT RETURNS OVER THE LAST 3


YEARS
Along with generating 4000%
55.32% returns in the last 1
year, the stock has 2000%

55.32% outperformed BSE 500 in


each of the last 3 annual 0%

UP periods
-2000%

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BIGBLOC Construction Ltd BSE500

Inconsistent Performance against Small Cap


companies
BIGBLOC Construction Ltd has not been a
consistent performer in the YTD

3rd
Quartile
1st
Quartile
1st
Quartile
Stock has been in the 1st quartile in 2022 and
in 3rd in YTD period

YTD 2022 2021


12.49% 144.12% 151.60%

Company 1 Month 3 Month 1 Year 3 Years


BIGBLOC Const. -3.34% 30.87% 55.32% 2528.04%
Return DLF 0.05% 35.45% 50.82% 223.65%
Comparison
Macrotech Devel. 25.78% 53.2% 32.39% -
with Peers
Closest peers by Godrej Propert. 9.22% 49.34% 26.29% 74.72%
market cap Oberoi Realty 3.45% 17.43% 28.64% 175.82%

MOJO PROFESSIONAL 12
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BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

RESULT
ANALYSIS 

MOJO PROFESSIONAL 13
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BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

QUARTERLY VARIANCE

QUARTER RESULTS VARIANCE ANALYSIS


Mar'23 Dec'22 QoQ Mar'22 YoY Comments
Total Operating income 47 50 -6% 53 -12.2% Fall in previous quarter and same
quarter last year
Total Expenditure (Excl Depreciation) 36 36 -0.8% 42 -14.9% QoQ and YoY decrease
Operating Profit (PBDIT) excl Other Income 11 13 -20.2% 11 -1.4% QoQ and YoY decrease
Other Income 1 0 6% 0 527.3% High Growth in previous quarter
and same quarter last year
Operating Profit (PBDIT) 11 13 -15.1% 11 4%
Interest 1 1 16.5% 1 15.5% High Growth in previous quarter
and same quarter last year
Exceptional Items 0 0 0% 0 0%
Depreciation 2 2 6.7% 2 3.9% QoQ and YoY increase
Profit Before Tax 8 11 -21.4% 8 2.4%
Tax 3 3 -5.3% 1 282.7%
Provisions and contingencies 0 0 0% 0 0%
Net Profit 6 8 -27.6% 7 -25.7% Fall in previous quarter and same
quarter last year
Share in Profit of Associates 0 0 0% 0 0%
Minority Interest -0 -0 200% 0 0%
Other related items 0 0 0% 0 0%

Consolidated Net Profit 6 8 -27% 7 -24.9% Fall in previous quarter and same
quarter last year

Consolidate results triggered in Rs Cr

Margins
Mar'23 Dec'22 Sep'22 Jun'22 Mar'22 Avg. (4 Comments
Qtrs)
OPM 22.8% 26.9% 28.7% 22.0% 20.3% 24.5% Lower than average (4 Qtrs)
GPM 21.6% 24.7% 26.6% 20.8% 18.4% 22.6% Lower than average (4 Qtrs)
NPM 11.9% 15.5% 17.5% 15.2% 14.1% 15.6% Lower than average (4 Qtrs)

MOJO PROFESSIONAL 14
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BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

ANNUAL RESULT

NET SALES - YOY GROWTH IN YEAR ENDED


MAR 2023 IS 14.20% VS 70.48% IN MAR
2022
Consolidated Net Profit: YoY Growth in year ended Mar 2023 is 88.50% vs 551.01% in Mar
2022
Operating Profit (PBDIT) excl Other Income: YoY Growth in year ended Mar 2023 is
84.27% vs 127.49% in Mar 2022
Interest: YoY Growth in year ended Mar 2023 is 11.53% vs -15.80% in Mar 2022 14.20%
Operating Profit Margin (Excl OI): YoY Growth in year ended Mar 2023 has improved from NET SALES
Mar 2022

Mar'23 Mar'22 Change(%)


Net Sales 200.11 175.22 14.20%
Key Operating Profit (PBDIT) excl Other Income 50.01 27.14 84.27%
Annual Interest 4.16 3.73 11.53%
Results Exceptional Items 0.00 0.00

Consolidated Net Profit 30.31 16.08 88.50%


Operating Profit Margin (Excl OI) 24.99 15.49 9.50%
Figures in Rs Cr | Seasonal companies are compared with the same quarter last year

Net Sales-YoY Growth in year ended Mar 2023 is 14.20% vs Consolidated Net Profit-YoY Growth in year ended Mar 2023
70.48% in Mar 2022 is 88.50% vs 551.01% in Mar 2022
400 50
30.31
25 16.08
200.11
200 175.22
2.46 2.47
100.08 118.79 102.78 0
-1.40
0 -25
Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023

Operating Profit (PBDIT) excl Other Income-YoY Growth in Operating Profit Margin (Excl OI)-YoY Growth in year ended
year ended Mar 2023 is 84.27% vs 127.49% in Mar 2022 Mar 2023 has improved from Mar 2022
100 40

24.99
50.01
50 20 15.49
27.14 11.61
6.89 8.70
6.90 10.33 11.93
0 0
Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023

Figures in Rs Crore

MOJO PROFESSIONAL 15
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BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

BALANCESHEET AND CASHFLOW

BALANCE SHEET AND CASH FLOW


ANALYSIS

-30.06% Borrowings
Mar'22
42.62
Mar'21
60.94
Change%
-30.06%

Increase
Other Long Term Liabilities 0.07 0.08 -12.50%
Fixed Assets 70.08 70.77 -0.97%
Investments 0.46 0.03 1,433.33%
in Borrowings in quarter Current Assets 42.89 42.19 1.66%
ended Mar 2022 vs in
Figures in Rs Cr
Mar 2021

Other Long Term Liabilities: YoY Growth in year ended Mar 2022 is -12.50% vs 166.67% in Mar 2021
Fixed Assets: YoY Growth in year ended Mar 2022 is -0.97% vs 4.41% in Mar 2021
Investments: YoY Growth in year ended Mar 2022 is 1,433.33% vs 0.00% in Mar 2021
Current Assets: YoY Growth in year ended Mar 2022 is 1.66% vs 12.33% in Mar 2021

Cash From Operation - YoY Growth in year ended Mar


547.87% 2022 is 547.87% vs -33.21% in Mar 2021
Mar'22 Mar'21 Change%
GROWTH Cash Flow from Operating Activities 24.36 3.76 547.87%
Figures in Rs Cr

30
24.36

20

10
5.63
4.13 3.76

0
Mar 2019 Mar 2020 Mar 2021 Mar 2022

MOJO PROFESSIONAL 16
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BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

PEER COMPARISION

PEER COMPARISON
BIGBLOC Const. Ajmera Realty Ritesh Propertie Shriram Elpro Internatio
Properti
Size
Market Cap (Cr.) 1,143 1,294 1,200 1,086 1,098
Annual Sales (TTM) (Cr.) 200 431 72 674 116
Annual Net Profit (TTM) (Cr.) 30 72 -1 66 48
Growth Factors (TTM)
Net Sales Growth 1 year 14.2% -10.7% -0.6% 0.6% 60.3%
Operating Profit Growth 1 year 106.7% 7.4% -104% -61% 15.9%
Net Profit Growth 1 year 88.6% 57.5% -102% 599% -95.5%
Net Sales Growth 5 year 19% 2.6% -61% 5.6% 29.6%
Operating Profit Growth 5 year 99.1% -3.3% -104% 13.7% 64.4%
Net Profit Growth 5 year 131.3% -2.8% -102.3% 40.6% -16.8%
Capital Structure Factors
EBIT to Interest 10.6 3.4 -1.1 0.3 7.6
Debt to EBITDA 1.8 6.6 -10.1 14.9 3.2
Net Debt to Equity 1.1 1 0 0.4 -0

Sales to Capital Employed 1.2 0.3 0.6 0.4 0.1


Management Quality Factors
ROCE (latest) 27.3% 7.9% -0.9% 2.1% 2.8%
ROE(latest) 40.3% 9.2% -0.5% 5.5% 3.8%
Tax Ratio 25.8% 25.6% -15.4% 5.3% 27.4%
Operating CF to Net Profit 151.5% -140.1% -42.6% 1318.9% -15.3%
Dividend Payout Ratio 8.8% 17.6% - - -
Valuation Factors
PE Ratio 37.7 18.1 -1199.7 16.5 22.9
Price to Book 15.2 1.7 10.3 0.9 0.9
PEG Ratio 0.4 0.3 - 0 -
Dividend Yield 0.1% 0.6% - - 0.4%
EV to EBITDA 24.6 16.6 -1204.8 37.2 26.6
EV to Capital Employed 7.6 1.3 9.9 0.9 0.9
Shareholding
Promoter Holdings 72.3% 69.7% 73.2% 28% 75%
Promoter Pledged Holdings - 7.9% 5.3% - -
Total Institutional Holding 0.1% 0.6% 2.2% 13.2% 13.1%
FII Holdings 0.1% 0% 2.2% 4.5% 13.1%
Returns
1 Month -2.9% 9.1% 4% -4.6% 7.9%
3 Months 31.4% 30.2% 21.4% 6.1% 8.1%
YTD 13% 17.7% 5.2% -14.6% -3.6%
1 Year 56% 52.3% 21.8% -3.3% 7.9%
3 Years 2539.4% 337% 3517.4% - 66.1%

MOJO PROFESSIONAL 17
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BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

COMPANY BACKGROUND

COMPANY BACKGROUND

About the Company


Bigbloc Construction was incorporated on June 17, 2015, under the Companies
INDUSTRY : Real Estate Act, 2013, in the state of Gujarat. Upto March 31, 2015, the AAC (Aerated
Autoclaved Concrete) Blocks business was conducted by Mohit Industries.
Consequent upon the demerger of AAC Block Division of Mohit Industries effective
1,137 cr (Small Cap) from March 16, 2016, the AAC Block business is being conducted by Bigbloc
Construction. Aerated autoclaved concrete (AAC) blocks are a high quality building
material that offers

Board of Directors
Naresh Sitaram Saboo Managing Director

Narayan Sitaram Saboo Executive Chairman

Mohit Narayan Saboo Director & CFO

Dishant Kaushikbhai Independent Director


Jariwal
Independent Director
Premil Jatinkumar Shah

4 more board of directors

Company Coordinates

Company Details: Registrat Details:


6th Floor, A-601/ B , International Trade Centre, Majura Gate, N
Ring Road, Surat Gujarat : 395002
Tel: 0261-2463261-63
Fax: 0261-2463264
Email: bigblockconstructionltd@gmail.com
Website: www.bigblocconstruction.com / www.nxtbloc.in

MOJO PROFESSIONAL 18
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BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

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BIGBLOC Const. SELL | Report as on 5 July 2023 at 01:08 AM

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