1. At a Glance – Tiny Market Cap, Giant Margin Drama
Market Cap: ₹122 Cr
Current Price: ₹88.1
3-Month Return: 19.1%
1-Year Return: 253%
P/E: 3.38
Price to Book: 0.96
ROE: 7.47%
ROCE: 9.96%
Debt: ₹7.22 Cr
Debt to Equity: 0.06
Ladies and gentlemen, welcome to the most confusing stock in real estate.
A company doing 64% operating margins, reporting 2,276% quarterly profit growth, earning ₹26 EPS (TTM), and still trading at a P/E of 3.38. Either the market knows something… or it simply refuses to believe the numbers.
Q3 FY26 EPS came in at ₹7.20. Quarterly sales exploded 1,710%. Net profit surged 2,276%. And yet, the valuation looks like it’s in a clearance sale.
But before you shout “hidden gem!”, let’s remember: this is a real estate developer where 91% of FY21 revenue came from land sales.
One big land deal = one big year.
So is this a cyclical jackpot? Or a one-season IPL performer?
Let’s investigate.
2. Introduction – Real Estate with Drama Included
Incorporated in 1992, Garnet Construction Ltd operates in residential, commercial, retail, mass housing, and cluster redevelopment.
Sounds broad, right?
But here’s the twist.
Historically, revenue has been highly lumpy. In FY21, 91% revenue came from land sales. That means earnings don’t flow smoothly like rent. They erupt like volcanoes when land gets sold.
And when land doesn’t sell?
Silence.
Now fast forward to FY26 Q3. Net profit ₹10 Cr in one quarter. For a ₹122 Cr market cap company, that’s not small change.
But real estate is a patience game. Projects take years. Cash cycles are brutal. And debtor days? 670 days.
Yes. 670.
That’s not receivables. That’s emotional commitment.
And just when things were stabilizing — major promoter Kishan Kumar Kedia passed away in February 2026, holding 29.37% stake.
Now the question becomes:
Will business continuity stay smooth?
Or will family dynamics add another plot twist?
Grab popcorn. This one’s interesting.
3. Business Model – WTF Do They Even Do?
Let’s decode this simply.
Garnet buys land. Develops projects. Sells units or land parcels.
Projects include:
Residential:
- Pyramid (92 acres, Raigarh)
- Brillante (3 towers, 40 storeys, Mumbai)
- Magic Hills (400 acres, Raigarh)
Commercial:
- Garnet Palladium (office space, Goregaon)
Industrial:
- Arkose (56 plots across 10 acres)
So they are land-heavy, development-driven.
But here’s the reality:
They’re not DLF.
They’re not Lodha.
They’re not Prestige.
They are a micro-cap land developer with episodic revenue bursts.
Think of them as a boutique developer with
