Multibagger Stock: This construction firm skyrocketed over 1390% in 3 years, shot up 3790% in 5 years

BigBloc Construction, one of the largest manufacturers of AAC blocks, bricks, and panels in India, saw its shares grow steadily in recent years, multiplying investors' wealth and attracting significant attention from the market.

According to recent media reports, ace investor Shankar Sharma acquired a 0.51% stake, equivalent to 3.65 lakh shares of the company, through open market transactions. This acquisition was made via a bulk deal on Monday at an average price of ₹235 per share.

Meanwhile the company's shares, which were priced at ₹16.60 apiece in April 2021, have surged by an impressive 1391%, reaching the current price of ₹247.55. Over the last five years, the shares have risen 3790%. 

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What's remarkable is the consistent returns observed each year. In the current year, the shares have already gained 51%, building on the momentum from a 14% increase in CY23 and a 144% surge in CY22. In CY21, they delivered a whopping return of 151%; even during the market turmoil in CY20, they gained 237%.

Q4FY24 scorecard

The company on Tuesday reported a consolidated net profit of ₹8.65 crore for Q4 FY24, marking a significant growth of 55.65% YoY compared to ₹5.56 crore net profit in Q4 FY23.

Revenue from operations during Q4 FY24 stood at ₹67.95 crore, showing a notable rise of 46% YoY compared to ₹46.55 crore in Q4FY23. EBITDA for Q4 FY24 was reported at ₹12.55 crore, reflecting an 18.35% increase from ₹10.60 crore in Q4 FY23.

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For FY24, the company reported a consolidated net profit of ₹30.69 crore, which came in flat compared to ₹30.14 crore in FY23. Revenue from operations during FY24 stood at ₹243.22 crore, indicating a 21.55% YoY rise from ₹200.11 crore in FY23.

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Recent developments

In March, the company's wholly-owned subsidiary, BigBloc Building Elements, received an eligibility certificate for a subsidy of ₹27.14 crore under the Maharashtra government's incentive scheme for completing Phase I of the AAC blocks project at Wada in Palghar, Maharashtra.

During the same month, SIAM Cement BigBloc Construction Technologies Pvt Ltd, a joint venture between BigBloc Construction Ltd and Thailand’s SCG International India Pvt Ltd, commenced production at its Greenfield project in Kheda district near Ahmedabad (Gujarat). 

The joint venture plant has an installed capacity of 2.5 lakh cubic meters per annum and will manufacture AAC blocks and ALC panels, marketed under the brand name ‘ZMARTBUILD WALL by Nxtbloc’. BigBloc Construction holds 52% of the joint venture company, with SCG holding the remaining 48%, as per the company's earnings report. 

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BigBloc Construction specialises in manufacturing building blocks and AAC (Aerated Autoclaved Concrete) bricks. AAC blocks are a premium building material known for their exceptional strength, lightweight nature, thermal insulation properties, sound absorption capabilities, and remarkable fire resistance. Additionally, AAC is environmentally friendly, non-toxic, and energy efficient.

As the sole listed company in the AAC block space, it boasts an installed capacity of 10.75 lakh cubic meters per year. Its manufacturing facilities are strategically located in Umargaon (Vapi) and Kapadvanj (Ahmedabad) in Gujarat, as well as Wada (Palghar) in Maharashtra. 

Notably, it is one of the few companies in the AAC industry capable of generating carbon credits.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.