On Tuesday, frontline Indian benchmark indices were observed trading soft. However, the broader market indices continued to outperform, with Nifty Mid-cap gaining nearly 1%, while Small-cap moved higher by 0.68%. The advance-decline ratio favors advances, with 1586 stocks trading in green and 516 stocks trading in red.
Despite the tepid performance of frontline indices, one stock has seized attention with its recent development. Over the last three years, this stock has delivered multibagger returns, surging by a staggering 991.36%. In the last three months alone, it has added 41.02%. On Tuesday, the stock is trading higher by 4.5% at Rs 229.45 per share. Classified under the small-cap category, its market cap stands at Rs 1,624 crore.
A significant development in the market is the commencement of production at SIAM Cement BigBloc Construction Technologies Pvt Ltd’s Greenfield project in Kheda district near Ahmedabad, Gujarat. This venture, a collaboration between Gujarat-based BigBloc Construction Ltd and Thailand’s SCG International India Pvt Ltd, aims to manufacture AAC Blocks and ALC panels under the brand name ‘ZMARTBUILD WALL by Nxtbloc’.
The total investment in the Kheda project is estimated at Rs. 65 crore, with the potential to generate 50,000-60,000 units of carbon credits annually. At full capacity, the plant is expected to generate revenues of around Rs. 100 crore per annum. Furthermore, the joint venture aims to foster mutual growth and cooperation in the construction industry, bringing new-age building materials to the Indian markets. The Kheda Kapadvanj project has the potential to expand to 5 lakhs CBM per annum in the second phase, subject to approval from both joint venture parties.
BigBloc Construction Ltd, established in 2015, entered into a strategic joint venture with Thailand’s Siam Cement Group (SCG) in 2021 for the manufacturing facility in Kheda District. BigBloc Construction holds a 52% stake in the joint venture, with SCG owning the remaining 48%. This marks SCG Group’s inaugural investment in India. SCG, founded in 1913, is one of Southeast Asia’s largest cement and building material companies.
Bigbloc Building Elements Pvt Ltd, a wholly-owned subsidiary of BigBloc Construction Ltd, has initiated work on the second phase of the AAC blocks plant in Wada, Palghar, Maharashtra. Post-expansion, the company’s total capacities will increase to 13.75 lakhs cubic meters per annum, solidifying its position as one of the largest players in the country. The expansion is also expected to generate approximately 2.75 lakh carbon credits annually.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
Published on: Apr 2, 2024, 1:00 PM IST
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