Know your stock: BigBloc Construction gets Shankar Sharma’s seal of approval

BigBloc Construction is engaged in the business of manufacturing building blocks and AAC (Aerated Autoclave Concrete) bricks

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26 Aug, 2025 12:21

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Shares of BigBloc Construction traded 3.8 percent higher at Rs 274.50 on May 7 after renowned investor Shankar Sharma bought an equity stake in the building block manufacturer. Sharma bought 3.65 lakh shares, or a 0.51 percent stake in Bigbloc Construction at an average price of Rs 235. The total value of the deal is Rs 8.57 crore.

BigBloc's shares have more than doubled in the last one year, outperforming NSE Nifty 50, which has gained 23 percent during the same period.

The company was also due to announce its Q4 results on May 7.

BigBloc Construction annual performance

BigBloc Construction quarterly performance

Incorporated on June 17, 2015, in Gujarat, BigBloc is engaged in the business of manufacturing building blocks and AAC (Aerated Autoclave Concrete) bricks.  AAC blocks are known for their superior qualities including strength, lightweight nature, thermal insulation, sound absorption, exceptional fire resistance, and ease of construction. They are environmentally friendly, energy-efficient and provide a non-toxic construction solution.

AAC blocks of the company are marketed under the brand name NXTBLOC. Up to March 31, 2015, the AAC blocks business was conducted by Mohit Industries Ltd. BigBloc Construction emerged as a standalone entity in 2016 following the demerger of the AAC block division from Mohit Industries on March 16, 2016.

As per its FY23 annual report, BigBloc Construction boasts a production capacity of 8.25 lakh cubic metres (cbm) per annum, with plans to expand to a total capacity of 13.75 lakh cubic metres per annum.

Also Read | Bulk deals: Investor Shankar Sharma buys Rs 8.57-crore stake in Bigbloc Construction

BigBloc Construction has three manufacturing units located in Umargam (Gujarat), Kapadvanj (Gujarat), and Wada (Maharashtra). It has strategically positioned itself to serve prominent clients including Lodha, HDIL, Regency Nirman, Mahindra, Larsen & Toubro, Shapoorji Pallonji, and other major construction companies in Maharashtra.

AAC bricks offer superior quality at a lower cost compared to traditional bricks. With AAC blocks priced at Rs 4,100/cbm compared to Rs 4,500-5,000/cbm for red bricks, BigBloc Construction has positioned itself competitively in the industry, Bank of Baroda said in a research report earlier.

BigBloc Construction return ratio and P/E

Moreover, the company has managed to minimise its product rejection rates, with rejection levels well below industry standards. With rejection rates as low as 1-1.25 percent at its Wada plant, BigBloc maintains a significant edge over its competitors in terms of margins. While the industry typically experiences a product rejection rate of 7-8 percent, Bigbloc has a rejection rate of less than 4 percent.

Promoter Background

Led by a team of experienced professionals, including Narayan Sitaram Saboo, Naresh Sitaram Saboo, Mohit Narayan Saboo, and Manish Saboo, BigBloc has witnessed substantial growth in recent years.

Narayan Sitaram Saboo is the Chairman and Executive Director of BigBloc Construction with 34 years of experience in the management and operations of the textile business and 10 years in the AAC block business.

Naresh Sitaram Saboo is the Managing Director of the company. He provides strategic direction in the selection of technology and machinery for the setup of manufacturing facilities, improvement of production processes, and new ventures.

Also Read | Bigbloc Constru Standalone December 2023 Net Sales at Rs 25.07 crore, down 12.5% Y-o-Y

Mohit Narayan Saboo is the Director and CFO of BigBloc Construction. He is a Chartered Accountant and is responsible for handling corporate finance and accounting, secretarial and legal matters.

Manish Saboo is the Marketing & Strategy Head with over 10 years of experience as a commercial manager. His functions as executive director include planning and execution of the company's marketing and financial strategy.

BigBloc Construction's net profit came in at Rs 30.14 crore in FY23, up from Rs 2.92 crore recorded in FY17. Its revenue from operations rose to Rs 200.11 crore in FY23 from Rs 68.63 crore in FY17.

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