Multibagger stock alert: Promoter buys 1,05,000 shares of this small cap company after delivering good quarterly results

Ultimately, this action underscores the promoter's strong endorsement of Bigbloc's journey and their belief in its potential to become a leading player in the green building sector.

Promoter's Stake Acquisition: A Vote of Confidence

Shares of Bigbloc Construction Ltd (Bigbloc) reached a new 52-week high of Rs 234.45 today, fueled by a strategic move by a member of the promoter group. Madhu Narayan Saboo today acquired 1,05,000 equity shares of the company, sending a clear message of confidence in Bigbloc's future potential.

The transaction goes beyond a simple purchase. It signifies the promoter's unwavering belief in Bigbloc's capabilities and growth prospects.

While the specific reasons behind the purchase remain undisclosed, it likely reflects multiple motivations. It could be a strategic move to gain greater control over the company's direction, or it could signal the promoter's intent to participate in future fundraising or expansion plans. Ultimately, this action underscores the promoter's strong endorsement of Bigbloc's journey and their belief in its potential to become a leading player in the green building sector.

Understanding Bigbloc: A Green Leader in AAC Blocks

Established in 2015, Bigbloc has carved a niche in the manufacturing of AAC (Aerated Autoclaved Concrete) blocks, a sustainable and high-performance building material. Their brand, NXTBLOC, caters to the growing demand for eco-friendly construction solutions. With a strategic plant location and a clientele boasting renowned names like Lodha and Larsen & Toubro, Bigbloc has established itself as a key player in the industry.

Solid Q3 Performance: A Foundation for Growth

Bigbloc Construction's Q3 financial performance for the quarter ending December 2023 depicts a robust growth trajectory. Sales surged by an impressive 24.24 per cent, reaching Rs 61.5 crore, a testament to strong market demand or effective pricing strategies. The Profit Before Interest, Depreciation, and Taxes (PBIDT) recorded commendable growth at 21.8 per cent, amounting to Rs 16.2 crore, indicating operational efficiency. The Profit After Tax (PAT) demonstrated resilience, climbing by 11.69 per cent to Rs 8.6 crore.

The company's ambitious outlook anticipates 20-25 per cent sales growth in FY24, further solidifying its position in the market.

Conclusion: A Promising Future for Bigbloc

The promoter's stake purchase in Bigbloc Construction is a significant development that underscores the company's potential for continued growth. With a strong foundation in sustainability, a track record of solid performance, and the continued backing of its promoters, Bigbloc is well-positioned to capitalize on the opportunities within the Indian construction sector and emerge as a leader in the green building movement.

The stock has delivered 28 per cent returns since February 1 indicating bullish momentum in the stock after posting decent Q3FY2024 numbers. In Addition, the news of promoter buying shares adds to the good performance of stock in such volatile market. The stock has also delivered a stellar 769.37 per cent returns over past three years turning out to be a multibagger stock for the investors. Hence, Investors should keep an eye on this small cap construction materials player!

Disclaimer: The article is for informational purposes only and not investment advice.