Smallcap stock jumps 8% after company forays into chemical business - Trade Brains

by Trade Brains | Oct 15, 2024 | 4:49 pm | News, Trending News | 0 comments

The Shares of this small-cap company, which manufactures, building blocks and AAC bricks surged nearly 8 percent in the day’s trade on plans to manufacture construction chemicals.

With a market capitalization of Rs. 2,021.84 crores, BigBloc Construction Ltd. rose to an intraday high of Rs. 145.85 representing a 7.93 percent increase from its previous closing price of Rs. 135.13 per share.

According to exchange filings, BigBloc Construction Ltd is venturing into the manufacturing of construction chemicals, primarily block jointing mortar, ready mix plaster, and tile adhesives. The manufacturing facility will be established at its Umargoan facility by forming a wholly-owned subsidiary by the name Bigbloc Building Elements Private Limited.

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Currently, the company offers block jointing mortar and ready mix plaster through white labeling under the brand names NXTFIX and NXTPLAST, and it is expanding its product portfolio to include tile adhesives under the brand NXTGRIP.

Recently, the company formed a joint venture with SCG International to launch India’s first AAC wall plant in Kheda, Gujarat, with an investment of Rs. 65 crores and a capacity of 2.5 lakh cubic meters per annum. The plant became operational in June 2024 and the product was marketed under the brand Zmartbuild Wall.

For Q1FY25 the company reported a net profit decrease of 48.64 percent to Rs. 3.03 crores compared to Rs. 5.9 crores in Q1FY24, while revenue from operations also marked a decrease of 6 percent to Rs. 51.57 crores from Rs. 54.87 crores in comparison to the same period.

The company has an ROE of 34.22 percent and an ROCE of 24.33 percent in FY24. The company’s shares have delivered a 34 percent return over the past six months and nearly 74 percent year-to-date.

BigBloc Construction Ltd is one of the largest manufacturers of AAC (Aerated Autoclave Concrete) blocks in India and related products with a total capacity of 10.75 lakhs cubic meters p.a. The company markets its ACC blocks under the brand name NXTBLOC and jointing mortar and ready mix plaster through white labeling under the brand names NXTFIX and NXTPLAST.

The company has four manufacturing units located in Vapi and Ahmedabad, Gujarat, and Palghar, Maharashtra. It has direct sales with marquee developers and maintains regular client relationships with cement companies like ACC and Ambuja. Additionally, it supplies to CIDCO and has a broad distributor base.

Written By: Joseph Pv

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