WEBSITE BSE:526727 NSE: GARNET CONST Inc. Year: 1992 Industry: Construction - Real Estate My Bucket: Add Stock
Last updated: 10:39
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1. Business Overview
Garnet Construction Ltd. operates in the Construction - Real Estate sector in India. Its core business model likely involves the acquisition of land or development rights, planning and designing of real estate projects, obtaining necessary regulatory approvals, constructing residential, commercial, or mixed-use properties, and subsequently marketing and selling/leasing these developed assets to customers. The company primarily makes money through the sale of completed properties such as apartments, villas, office spaces, or retail units, and potentially through development management fees or contract construction services for third parties.
2. Key Segments / Revenue Mix
Without specific financial data, the exact revenue mix is not available. However, based on the industry, potential key segments would typically include:
Residential Real Estate: Development and sale of apartments, independent houses, or plotted developments.
Commercial Real Estate: Development and sale/lease of office spaces, retail complexes, or business parks.
Contract Construction: Potentially undertaking construction projects for other developers or government bodies, though this is less common for a pure "Real Estate" company.
Given the company name, it is highly probable that residential and commercial real estate development are the primary revenue drivers.
3. Industry & Positioning
The Indian real estate and construction industry is highly fragmented, characterized by numerous local and regional players alongside a few large national developers. It is a cyclical industry, heavily influenced by macroeconomic factors like economic growth, interest rates, government policies, and urbanization trends. Without specific market share or project pipeline data, Garnet Construction Ltd. is likely positioned as a regional or local player within India, competing with a multitude of other developers on factors such as location, project quality, pricing, and timely delivery.
4. Competitive Advantage (Moat)
Without specific information, it is difficult to ascertain strong, durable competitive advantages for Garnet Construction Ltd. Potential sources of a moat in the real estate sector, which may or may not apply, include:
Strategic Land Bank: Access to prime land parcels at favorable costs in high-demand areas.
Brand Reputation: A strong brand built on trust, quality, and timely delivery, leading to repeat customers and premium pricing (unlikely for a smaller/mid-sized player without specific evidence).
Execution Efficiency: Superior project management, cost control, and faster turnaround times.
Local Expertise: Deep understanding of local regulations, market preferences, and supply chain.
Based on the general industry structure and the limited information, a significant, easily identifiable moat is not evident. The company's competitive edge would likely stem from its project-specific execution capabilities and regional market knowledge.
5. Growth Drivers
Key factors that could drive growth for Garnet Construction Ltd. over the next 3-5 years include:
Urbanization & Population Growth: Continued migration to urban centers drives demand for housing and commercial spaces.
Rising Disposable Incomes: Increased purchasing power supports demand for mid-income and luxury housing.
Government Initiatives: Policies like "Housing for All," Smart Cities, and infrastructure development projects can stimulate demand and create opportunities.
Favorable Interest Rate Environment: Lower home loan interest rates typically boost homebuyer sentiment and affordability.
Project Pipeline: Successful acquisition of new land parcels and timely launch of well-received projects.
6. Risks
Garnet Construction Ltd., like other players in the Indian real estate sector, faces several risks:
Economic Slowdown: A downturn in the Indian economy can reduce consumer confidence and demand for real estate.
Interest Rate Fluctuations: Rising interest rates can increase borrowing costs for the company and make home loans more expensive for buyers, impacting sales.
Regulatory & Approvals Risk: Delays or changes in environmental clearances, land acquisition laws, or RERA regulations can cause project delays and cost overruns.
Funding Challenges: Access to timely and affordable credit from banks or other financial institutions can be challenging.
Project Execution Risk: Delays in construction, quality issues, or cost escalations due to raw material price volatility can impact profitability and reputation.
Intense Competition: The fragmented nature of the industry leads to significant competition for land, customers, and market share.
Land Acquisition Challenges: Difficulty in acquiring suitable land parcels at viable prices.
7. Management & Ownership
Most Indian real estate companies are promoter-led, meaning they are founded and largely controlled by a single family or group. Without specific details, Garnet Construction Ltd. is likely promoter-owned, with a significant stake held by the founding family or associated entities. The quality of management would depend on their experience in the real estate sector, their track record of project execution and delivery, financial discipline, and adherence to corporate governance standards, none of which can be assessed with the available information.
8. Outlook
Garnet Construction Ltd. operates in a sector that is inherently cyclical but poised for long-term growth driven by India's urbanization, demographic dividend, and economic development.
Bull Case: The company could benefit from a favorable regulatory environment, robust economic growth boosting demand, successful acquisition and execution of new projects, and efficient capital management. A strong focus on timely delivery and quality could help it capture market share in its operational regions.
Bear Case: The company could face headwinds from an economic slowdown, escalating interest rates, prolonged project approval delays, intense competition leading to pricing pressures, or difficulties in securing adequate funding. Poor project execution or an inability to adapt to changing market dynamics would also pose significant challenges.
Overall, the company's performance will largely depend on its ability to strategically acquire land, manage project costs and timelines effectively, navigate the complex regulatory landscape, and respond to the cyclical nature of the Indian real estate market.
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Market Cap ₹112 Cr.
Stock P/E 15.2
P/B 0.8
Current Price ₹80.8
Book Value ₹ 99
Face Value 10
52W High ₹116
Dividend Yield 0%
52W Low ₹ 24.9
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 1 | 1 | 7 | 15 | 1 | 1 | -1 | 40 | 16 | 16 |
| Other Income | 5 | 5 | 2 | 0 | 0 | 0 | 3 | 0 | 0 | 0 |
| Total Income | 6 | 6 | 9 | 15 | 1 | 1 | 3 | 40 | 16 | 16 |
| Total Expenditure | 1 | 1 | 10 | 5 | 1 | 1 | 1 | 16 | 7 | 2 |
| Operating Profit | 4 | 4 | -0 | 10 | -1 | -0 | 2 | 25 | 9 | 14 |
| Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 4 | 4 | -1 | 10 | -1 | -0 | 2 | 24 | 9 | 13 |
| Provision for Tax | 1 | 1 | -0 | 2 | -0 | -0 | 0 | 6 | 2 | 3 |
| Profit After Tax | 3 | 3 | -1 | 7 | -1 | -0 | 1 | 18 | 7 | 10 |
| Adjustments | 0 | 0 | -0 | 0 | 0 | -0 | -0 | 0 | -0 | 0 |
| Profit After Adjustments | 3 | 3 | -1 | 7 | -1 | -0 | 1 | 18 | 7 | 10 |
| Adjusted Earnings Per Share | 2.4 | 2.4 | -0.4 | 5.2 | -0.6 | -0.3 | 1.1 | 13.1 | 4.7 | 7.2 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 29 | 46 | 11 | 6 | 7 | 68 | 67 | 6 | 2 | 11 | 16 | 71 |
| Other Income | 0 | 0 | 0 | 0 | 1 | 1 | 2 | 3 | 2 | 7 | 3 | 3 |
| Total Income | 29 | 47 | 11 | 6 | 8 | 69 | 68 | 8 | 4 | 18 | 19 | 75 |
| Total Expenditure | 23 | 40 | 8 | 2 | 6 | 57 | 50 | 7 | 3 | 13 | 8 | 26 |
| Operating Profit | 6 | 6 | 4 | 4 | 2 | 12 | 18 | 1 | 1 | 5 | 11 | 50 |
| Interest | 3 | 2 | 2 | 2 | 0 | 2 | 1 | 0 | 0 | 1 | 1 | 0 |
| Depreciation | 1 | 1 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 3 | 3 | 2 | 1 | 1 | 10 | 17 | 1 | 0 | 4 | 10 | 48 |
| Provision for Tax | 2 | 1 | 0 | 0 | 0 | 3 | 4 | 0 | 0 | 1 | 2 | 11 |
| Profit After Tax | 1 | 2 | 1 | 1 | 1 | 7 | 13 | 1 | 0 | 3 | 7 | 36 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 1 | 2 | 1 | 1 | 1 | 7 | 13 | 1 | 0 | 3 | 7 | 36 |
| Adjusted Earnings Per Share | 0.5 | 1.6 | 1 | 0.9 | 0.6 | 5 | 9.1 | 0.4 | 0.2 | 2.1 | 5.3 | 26.1 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 45% | 39% | -25% | -6% |
| Operating Profit CAGR | 120% | 122% | -2% | 6% |
| PAT CAGR | 133% | 91% | 0% | 21% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 204% | 77% | 32% | 20% |
| ROE Average | 7% | 4% | 5% | 4% |
| ROCE Average | 10% | 5% | 6% | 5% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 65 | 67 | 68 | 71 | 72 | 79 | 92 | 92 | 93 | 96 | 103 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 35 | 20 | 27 | 27 | 24 | 21 | 16 | 11 | 12 | 10 | 6 |
| Other Non-Current Liabilities | 2 | 2 | 2 | -0 | 0 | 1 | 1 | 1 | 1 | 1 | 1 |
| Total Current Liabilities | 111 | 88 | 75 | 56 | 76 | 81 | 77 | 64 | 57 | 57 | 66 |
| Total Liabilities | 213 | 178 | 172 | 155 | 172 | 182 | 186 | 168 | 163 | 163 | 176 |
| Fixed Assets | 8 | 7 | 6 | 6 | 5 | 5 | 5 | 4 | 4 | 4 | 5 |
| Other Non-Current Assets | 5 | 5 | 4 | 5 | 2 | 2 | 1 | 1 | 1 | 1 | 1 |
| Total Current Assets | 201 | 166 | 162 | 145 | 165 | 176 | 181 | 163 | 157 | 158 | 170 |
| Total Assets | 213 | 178 | 172 | 155 | 172 | 182 | 186 | 168 | 163 | 163 | 176 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 1 | 2 | 1 | 0 | -1 | 1 | 4 | 7 | 2 | 1 | 0 |
| Cash Flow from Operating Activities | -18 | 15 | 8 | 2 | -6 | 28 | 13 | -1 | -1 | -2 | 1 |
| Cash Flow from Investing Activities | 0 | 0 | 0 | 0 | 3 | 0 | 1 | 2 | 2 | 6 | 2 |
| Cash Flow from Financing Activities | 19 | -16 | -9 | -3 | 4 | -25 | -11 | -6 | -2 | -5 | -3 |
| Net Cash Inflow / Outflow | 1 | -2 | -0 | -1 | 1 | 3 | 3 | -5 | -1 | -1 | -0 |
| Closing Cash & Cash Equivalent | 2 | 1 | 0 | -1 | 1 | 4 | 7 | 2 | 1 | 0 | 0 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 0.47 | 1.56 | 0.97 | 0.87 | 0.59 | 4.96 | 9.1 | 0.37 | 0.21 | 2.12 | 5.33 |
| CEPS(Rs) | 1.16 | 2.18 | 1.42 | 1.26 | 0.93 | 5.21 | 9.34 | 0.62 | 0.45 | 2.32 | 5.55 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 46.65 | 48.21 | 49.18 | 51.32 | 51.91 | 56.88 | 65.99 | 66.35 | 66.6 | 68.71 | 74.01 |
| Core EBITDA Margin(%) | 20.74 | 12.52 | 33.77 | 58.01 | 17.32 | 17.02 | 24.49 | -22.44 | -26.09 | -16.27 | 39.93 |
| EBIT Margin(%) | 17.99 | 11.53 | 28.91 | 51.62 | 22.01 | 17.51 | 26.42 | 21.39 | 13.15 | 40.1 | 55.29 |
| Pre Tax Margin(%) | 8.81 | 6.27 | 14.19 | 25.13 | 15.99 | 14.25 | 25.42 | 12.79 | 8.65 | 34.09 | 50.55 |
| PAT Margin (%) | 2.31 | 4.69 | 11.89 | 20.85 | 11.25 | 10.08 | 18.92 | 9.16 | 5.52 | 24.48 | 37.81 |
| Cash Profit Margin (%) | 5.64 | 6.55 | 17.37 | 30.15 | 17.63 | 10.59 | 19.42 | 15.42 | 11.84 | 26.87 | 39.41 |
| ROA(%) | 0.31 | 1.11 | 0.77 | 0.74 | 0.5 | 3.89 | 6.86 | 0.29 | 0.18 | 1.81 | 4.37 |
| ROE(%) | 1.02 | 3.29 | 1.99 | 1.74 | 1.15 | 9.12 | 14.81 | 0.55 | 0.32 | 3.13 | 7.47 |
| ROCE(%) | 4.69 | 4.64 | 3.09 | 2.84 | 1.42 | 10.59 | 16.13 | 1.08 | 0.64 | 4.52 | 9.96 |
| Receivable days | 576.1 | 364.54 | 1342.4 | 2201.02 | 1607.84 | 192.4 | 200.45 | 2363.65 | 2448.23 | 986.35 | 561.82 |
| Inventory Days | 1539.85 | 879.04 | 3285.43 | 6283.22 | 5211.77 | 519.71 | 398.21 | 4144.67 | 4594.74 | 2020.61 | 1195.98 |
| Payable days | 120.98 | 66.61 | 537.18 | 0 | 580.02 | 56.47 | 127.08 | 963.29 | 2283.92 | 89.87 | 326.05 |
| PER(x) | 28.05 | 7.69 | 12.76 | 24.91 | 21.66 | 2.39 | 2.09 | 74.18 | 53.96 | 10.53 | 4.48 |
| Price/Book(x) | 0.29 | 0.25 | 0.25 | 0.42 | 0.25 | 0.21 | 0.29 | 0.41 | 0.17 | 0.32 | 0.32 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 2.53 | 1.25 | 4.56 | 11.5 | 8.73 | 0.59 | 0.59 | 9.27 | 14.45 | 3.72 | 2.59 |
| EV/Core EBITDA(x) | 11.85 | 9.37 | 13.25 | 18.87 | 30.74 | 3.27 | 2.19 | 40.74 | 28.31 | 8.12 | 3.75 |
| Net Sales Growth(%) | 381.58 | 61.92 | -75.46 | -48.7 | 25.41 | 836.13 | -2.21 | -91.68 | -63.82 | 452.76 | 44.57 |
| EBIT Growth(%) | -10.48 | 3.72 | -38.45 | -8.39 | -46.54 | 644.96 | 47.54 | -93.26 | -41.66 | 593.51 | 124.84 |
| PAT Growth(%) | -71.19 | 228.94 | -37.8 | -10.06 | -32.32 | 739.05 | 83.46 | -95.97 | -42.8 | 908.33 | 151.88 |
| EPS Growth(%) | -71.19 | 228.96 | -37.8 | -10.06 | -32.32 | 739.05 | 83.46 | -95.97 | -42.79 | 908.1 | 151.87 |
| Debt/Equity(x) | 0.86 | 0.63 | 0.51 | 0.52 | 0.65 | 0.35 | 0.22 | 0.17 | 0.16 | 0.11 | 0.08 |
| Current Ratio(x) | 1.81 | 1.88 | 2.14 | 2.57 | 2.18 | 2.17 | 2.33 | 2.54 | 2.75 | 2.78 | 2.57 |
| Quick Ratio(x) | 0.71 | 0.74 | 0.77 | 0.86 | 0.7 | 1.14 | 1.52 | 1.55 | 1.53 | 1.67 | 1.59 |
| Interest Cover(x) | 1.96 | 2.19 | 1.96 | 1.95 | 3.66 | 5.36 | 26.37 | 2.49 | 2.92 | 6.67 | 11.66 |
| Total Debt/Mcap(x) | 3.03 | 2.51 | 2.03 | 1.22 | 2.63 | 1.7 | 0.76 | 0.42 | 0.93 | 0.34 | 0.26 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 61.29 | 61.29 | 61.29 | 61.29 | 61.29 | 61.29 | 61.29 | 61.29 | 61.29 | 61.29 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 38.71 | 38.71 | 38.71 | 38.71 | 38.71 | 38.71 | 38.71 | 38.71 | 38.71 | 38.71 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.85 | 0.85 | 0.85 | 0.85 | 0.85 | 0.85 | 0.85 | 0.85 | 0.85 | 0.85 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.39 | 1.39 | 1.39 | 1.39 | 1.39 | 1.39 | 1.39 | 1.39 | 1.39 | 1.39 |
* The pros and cons are machine generated.
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