The point I’m trying to make is the Design & Build Business is an altogether different business than what they are currently doing.
Their earlier business model of working on themes for office spaces/designs (based on my understanding) doesn’t involve as many challenges as the Design & Build Business will bring in. At the same time, Design business (w/o Build part) in itself is lucrative and a cash cow while D&B business makes you another contractor in the market.
If company is foraying into D&B there’s a high change that they understand the limitation of their Design business (or it has reached the saturation) and now they are entering into an inferior business altogether. D&B business is a cash guzzler in terms of Working Capital and Customer penalties,etc., There’s a reason you don’t see lot of big companies in D&B business.
Hope I was able to convey my perspective.
Did 6+ crores revenue in Q3 and have a order book of 10 crores,
Most prolly revenue for Q4 will be around 14+ crores,
Quite a good growth for FY25 as whole and even for H2,
Many thanks for these details, very helpful… One question I wanted to throw open for discussion here is related to the new facility…How does there business really change after the new 7500sq ft. facility becomes operational? Is it just some backward integration stuff impacting margins and delivery OR does this new facility also increase there design prowess, makes them more creative and independent in design ideas?? If its the later, then it could be a game changer…Any thoughts??
The company does not seem have any MOAT,
But the increasing sales and marquee clients like MNC banks and IT companies are a possible testimony of the quality work it does.
If the company can now execute on design and build, that would be lever for the next level of growth
The team looks quite professional and hands on
The stock has corrected from the peak -
Disc - Not invested, but looks attractive at given valuations
@VibhavB - are you tracking blue pebble - any views on this?
I stumbled upon this stock while trying to research for deep value stocks. Not sure why this stock to cheap. If we take traditional EV/ EBITDA valuation, it only valued at 8. Yet the stock is continue to go down. Even at P/BV case, it is very cheap at 2.3 for the ROE of 29%.
Some more notable good things are.
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They are growing well both at the topline level and bottomline level for the past 5 years.
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Founders are experienced and have decent track record.( I couldn’t find anything bad about them yet). They achieved the revenue they said they would in 2025.
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Great repeat business
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Asset light business with high ROCE
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Zero debt and recent dividend shows cash generation is real
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IPO is completely a fresh issue with no dilution from promoter since. They still hold 75%.
Only two notable things I could say as negative.
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Recently both the founders increased their remuneration (0.7-0.8Cr it will take from EBITDA)
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They are foraying into low margin high value business (More working capital requirements)
Apart from that I couldn’t see anything alarming with them currently. I would even consider their unusual margin drop in H2 '25 as the possible brand investment. You take margin hit in your new offering but finish it faster and use it as a marketing material for futher projects.
So either they are very undervalued or something very bad is cooking underneath. Don’t know.
Disclosure: I just bought one lot today to keep track of this stock.
The company has posted top line of 10 crs which is a drop of 70 percent YoY - H1 2026, the management had gửided that in apr 25 itself it had 10 crs of pipeline - however looks strange that only 10 crs was executed too. The stock will be up for a plunge, any one who has written to mgmt for clarification and got a response as yet?