The shares of this smallcap company surged by 5 percent after announcing the record date for the issuance of bonus shares in the ratio 1:1. On a YTD basis, the stock has delivered more than 50 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 1,820 crores, the shares of Bigbloc Construction Ltd started Tuesday’s trading session on a higher note at Rs. 253.97 compared to its previous close of Rs. 246.75.
During the trading session, trading session the shares hit a high of Rs. 259, gaining around 5 percent and are currently trading at Rs. 255 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced the “Record Date” for the issuance of bonus shares as September 12, 2024.
The bonus shares will be issued to the Shareholders of the company in the ratio 1:1 i.e. 1 new fully paid-up equity share of Rs. 2 each for every 1 existing fully paid-up equity share of Rs. 2 each held by the shareholders of the company as on the record date.
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Financials:
Looking at the company’s financial statements, the revenue decreased by 24 percent from Rs. 67.95 crores during the March quarter to Rs. 51.57 crores in the June quarter. On the other hand, the net profits declined by around 65 percent from Rs. 8.65 crores to Rs. 3.03 crores during the same period.
Manufacturing Facilities:
BigBloc Construction Limited is a leading AAC (Aerated Autoclave Concrete) block manufacturer in India, with a total annual production capacity of 1,075,000 m³.
The company operates four advanced manufacturing units in Vapi and Ahmedabad, Gujarat, and Palghar, Maharashtra. However, with the ongoing capacity expansion plans, the company will catapult to become the largest AAC manufacturer in India by FY25.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 29.69 percent and a return on capital employed (RoCE) of 23.32 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 12.61 percent.
Customer Base:
The company has a strong clientele base of more than 100 marquee clients, with well-known players like, Adani, Macrotech Developers, Prestige, Oberoi Realty, Birla Estates, Mahindra Lifespaces, Sunteck Realty, Raheja Universal, Raymond Realty, and many others.
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Company Profile:
Incorporated in 2015, Bigbloc Construction is primarily engaged in the manufacture, sale and marketing of AAC (Aerated Autoclaved Concrete) Blocks. These AAC Blocks of the company are marketed under the Brand name of NXTBLOC.
Written By Vaibhav Patil
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