Exploring the World of Multibagger Penny Stocks: Bigbloc Construction’s Remarkable Rise

Finding a multibagger penny stock that yields substantial profits can be a daunting task. Nevertheless, diligent investors are always on the hunt for opportunities that promise impressive returns. One such standout is Bigbloc Construction, whose share price journey over the past few years is nothing short of remarkable. Let’s delve into how this company has transformed the investment landscape.

Bigbloc Construction’s Impressive Share Price Surge

Bigbloc Construction’s stock has seen an extraordinary rise from ₹2.80 in April 2020 to its current trading price of about ₹67 on the NSE. This astonishing growth represents a staggering 2,293% increase over five years.

• Investment Insight: A ₹1 lakh investment in Bigbloc Construction made 16 years ago would have ballooned to nearly ₹24 lakhs today, showcasing the power of long-term investing.

Recent Performance and Price Fluctuations

On Thursday, Bigbloc Construction shares closed at ₹66.97, up from the previous day’s ₹66.49. In just the past week, the stock has experienced a 10.24% rise.

• Long-term Gains: Since its listing, the stock has returned more than 2,026.03% to long-term investors.
• Short-term Challenges: However, it’s worth noting that short-term investors have faced challenges, as the stock has declined over 50% in the last six months and more than 40% over the past year. Year-to-date, it has dropped 34.63%, falling from ₹102.45 to its current level.

Company Highlights and Financial Performance

Recently, the board of Bigbloc Construction approved a 1:1 bonus equity share, giving one bonus share for each existing share held by shareholders. Additionally, the company plans to double its authorized share capital from ₹15 crore to ₹30 crore, expanding to 15 crore equity shares at ₹2 each.

In terms of financial performance for FY24, Bigbloc reported a consolidated net profit of ₹30.69 crore. The revenue from operations for the same period reached ₹243.22 crore, marking a 21.55% increase year-over-year compared to ₹200.11 crore in FY23. The company’s EBITDA also rose to ₹56.15 crore, reflecting a 12.29% growth from the previous year’s ₹50.01 crore.

• Promoter Stake Growth: The promoter group has been steadily increasing their stake, rising from 69.32% in March 2020 to 72.63% by December 2024. They have also waived their rights to final dividends over the past few years to support business expansion.

About Bigbloc Construction

Founded in 2015, Bigbloc Construction Ltd stands out as one of India’s largest and only publicly listed AAC (Autoclaved Aerated Concrete) block manufacturers. With an impressive annual capacity of 1.3 million cubic meters, the company operates plants in Gujarat (Kheda, Umargaon, Kapadvanj) and Maharashtra (Wada).

As investors continue to seek promising stocks in the market, Bigbloc Construction’s journey presents valuable insights into the potential of long-term investments in niche industries. For those willing to navigate the ups and downs, the rewards can be significant.