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Check Before You Invest : Garnet Construction Ltd

BSE: 526727 NSE: ISIN: INE797D01017
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Garnet Construction Ltd belong to?
Garnet Construction Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Garnet Construction Ltd a good quality company?
Garnet Construction Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Garnet Construction Ltd undervalued or overvalued?
Garnet Construction Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Garnet Construction Ltd a good buy now?
Garnet Construction Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Garnet Construction Ltd?
Garnet Construction Ltd revenue growth is 44.6% for FY-2025 , which is above its 5 year CAGR of -25.1% , indicating faster growth.
Q.2 Gross Profit margin of Garnet Construction Ltd?
Garnet Construction Ltd Gross profit margin which is the profit after deduction of direct costs, is 52.2% for FY-2025 , which is above its 5 year median of 25.9% , indicating increasing margins.
Q.3 Operating Profit Margin of Garnet Construction Ltd?
Garnet Construction Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 48.6% for FY-2025 , which is above its 5 year median of -17.56% indicating increasing margins.
Q.4 Net Profit Margin of Garnet Construction Ltd?
Garnet Construction Ltd Net Profit Margin is 46.03% for FY-2025 , is above with its 5 year median of 18.92%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 52.2 25.9
Operating Profit Margin 48.6 -17.56
Net Profit Margin 46.03 18.92
Q.5 Return on Asset of Garnet Construction Ltd?
Garnet Construction Ltd Return on Asset is 4.37%, which is above its 5 year historical median of 1.81%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Garnet Construction Ltd?
Garnet Construction Ltd Return on equity is 7.47% for FY-2025 , which is above its historical median of 3.13%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Garnet Construction Ltd?
Garnet Construction Ltd Return on capital employed is 9.96% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Garnet Construction Ltd?
Garnet Construction Ltd Cash conversion cycle is 1647 days, below its historical median of 2939 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.12 0.07
ROE 7.47 3.13
ROCE 9.96 4.51
Cash Conversion Cycle 1647 days 2939 days
Q.9 Debt to Equity ratio of Garnet Construction Ltd?
Garnet Construction Ltd Debt-to-Equity ratio is 0.08 , which is lower with the industry average of 0.23 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Garnet Construction Ltd?
Garnet Construction Ltd Debt to cash flow from operations is 14.71 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Garnet Construction Ltd?
Promoters hold 61.29% of the Garnet Construction Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Garnet Construction Ltd vs industry peers?
Garnet Construction Ltd revenue CAGR is -25.12% , compared to the industry median CAGR of 0.00% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 16.1 18.4
Gross Profit 8.4 1.2
Operating Profit 8 0.7
Net Profit 7 0.7
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.12 0.11
ROE 7.47 1.36
ROCE 9.96 3.93
Cash Conversion Cycle (days) 1646.79 440

Valuation & price assessment

Q.1 Stock return of Garnet Construction Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 21.4% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 21.4% 36% 86.7% 239.9%
Q.3 Valuation ratios of Garnet Construction Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 3.39 1.02 40.36
Price to Book 0.89 0.31 1.49
Price to Sales 1.72 0.29 4.61
EV to EBITDA 2.63 1.27 14.16

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