Bigbloc Construction shares rally over 6%, extend gains for second day after Shankar Sharma buys stake; Q4 results today

Shares of BigBloc Construction Ltd rallied for a second day, gaining as much as 6.6% in trade on May 7 (Tuesday), after ace investor Shankar Sharma bought a stake in the company via a bulk deal on Monday.

The bulk deal was executed just a day before the company’s earnings announcement for the fourth quarter ended March 2024 (Q4FY24) on Tuesday, May 7.

BigBloc Construction, a manufacturer and supplier of building blocks and AAC (aerated autoclaved concrete) bricks, was in focus on Monday after Sharma bought 0.51% stake, or 3.65 lakh shares of the company, at an average price of ₹235 per share through open market transactions. This translated into a deal size of ₹8.57 crore.

After the transaction, BigBloc Construction shares closed 6.6% higher on Monday on the National Stock Exchange of India (NSE). On Tuesday, the stock gained another 6.6% to hit an intra-day high of ₹282 apiece. By 10 am, however, the share price had trimmed some of its gains to trade 4.1% higher at ₹275.55.

Notably, BigBloc Construction shares have jumped nearly 24% in the past one month and have more than doubled in the past one year.

In the previous quarter ended December 2023 (Q3FY24), BigBloc Construction’s consolidated net profit had grown nearly 12% to ₹8.61 crore compared with a year ago. Total consolidated income had jumped 24% year-on-year to ₹61.52 crore during the quarter.

Last month, BigBloc Construction’s subsidiary SIAM Cement BigBloc Construction Technologies commenced production at its 2.5 lakh cubic meter per annum greenfield project in Kheda district near Ahmedabad, Gujarat.

SIAM Cement, the joint venture company between BigBloc Construction and Thailand’s SCG International India, plans to manufacture AAC blocks and ALC (autoclaved aerated lightweight concrete) panels at the facility and would market its products under the brand name ‘ZMARTBUILD WALL by Nxtbloc’.