Multibagger Small-cap stock about to set up two Greenfield projects with a combined capacity of 8 lakh cbm per annum, sees a net profit jump 81.6 per cent!
Company also expects to generate around 2.5 to 3 lakh tons of carbon credit every year post the expansion.
BigBloc Construction Limited, one of the leading players in the manufacturing of Aerated Autoclaved Concrete (AAC) Blocks, Bricks and Panels has reported consolidated net profit of Rs. 7.70 crore (PAT margin 15.5 per cent) for Q3FY23, growth of 81.6 per cent Y-o-Y as compared to the net profit of Rs. 4.24 crore (PAT margin 8 per cent) in Q3FY22. Total income during Q3FY23 ended December 2022 was reported at Rs. 49.55 crore. EBITDA for Q3FY23 stood at Rs. 13.31 crore (EBITDA Margin 26.9 per cent), rise of 79.3 per cent as against EBITDA of Rs. 7.42 crore (EBITDA Margin 14 per cent) in Q3FY22. EPS for Q3FY23 stood at Rs. 1.09 per share, rise 81.2 per cent Y-o-Y.
Incorporated in 2015, BigBloc Construction Ltd is one of the largest and only listed company in the AAC Block Space with a capacity of 5.75 lakh cubic meter (cbm) per annum. Green and non-toxic building construction material, AAC blocks are light weight, sound proof, fire resistant with superior build quality and saves energy, eco-friendly and economical too, compared to the traditional bricks. It is the only company in this segment which generates carbon credits.
Company is also setting up two Greenfield projects with a combined capacity of 8 lakh cubic meter per annum – 5 lakh cubic meter per annum plant at Wada, Palghar (Maharashtra) and 3 lakh cubic meter per annum in joint venture with Thailand’ SCG Group Kapadvanj Ahmedabad (Gujarat). Post completion of both expansion, company’s total capacities will increase to 13.75 lakh cbm per annum making the company one of the largest players in the country. Company also expects to generate around 2.5 to 3 lakh tons of carbon credit every year post the expansion.
Commenting on the performance, Mr. Narayan Saboo, Chairman & Managing Director, Bigbloc Construction Ltd said, "Company is growing from strength to strength and has delivered a robust operational and financial performance during December quarter with healthy growth in revenue, profitability. Company is progressing well with its expansion plans at Wada, Maharashtra and joint venture with SCG Group and committed to complete all projects on time. JV with SCG Group aims to share techno-commercial knowledge, promote mutual growth & cooperation in the construction industry and bring new age building materials to Indian markets. This expansion will help the company to further penetrate its presence into untapped markets across the western regions and also make it the largest player in India. Strategic initiatives, operational efficiency with a vision for building a brand with innovative products are likely to contribute healthy growth and maximise value for all stakeholders in the near to medium term."
The stock has shown tremendous performance as it has surged nearly 98 per cent in the last one-year, while in the last three years the stock has skyrocketed over 1750 per cent. Hence, it has been one of the best performing stocks in the Small-Cap category over the period of last three years and a multibagger stock!