1. At a Glance – Tiny Cap, Big Drama
Market Cap: ₹118 Cr.
Current Price: ₹59.9
3-Month Return: -23.3%
1-Year Return: -54.7%
P/E: 25.6
ROE: 4.67%
Debt: ₹1.01 Cr.
Promoter Pledge: 46.9%
Ladies and gentlemen, welcome to the circus.
Here’s a ₹118 crore “investment company” whose quarterly sales have fallen 90%, yet quarterly profit is up 158%. Operating margin is 52.6%, but ROE is just 4.67%. Debt is almost negligible — yet promoters have pledged nearly half their holding.
Stock has fallen 55% in one year. But wait — warrants worth ₹35.37 crore are being issued at ₹131 per share while the market price sits around ₹59.9.
If this were a Netflix series, it would be titled:
“NBFC, Textiles & Convertible Warrants — Season 5: The Plot Thickens.”
Curious? Good. Let’s unpack this spreadsheet thriller.
2. Introduction – Investment Company or Portfolio Masala?
Incorporated in 1981, Garnet International Ltd is officially an NBFC registered with RBI. That sounds respectable.
But then you read further.
They do:
- Financial services
- Trading of shares
- Textile manufacturing through subsidiary Sukartik Clothing
So what exactly are they?
Are they a mini mutual fund?
A garment manufacturer?
Or a stock trader with a stitching machine?
In FY21:
- 92% revenue came from sale of products
- 5% from sale of shares
- 2% from interest income
So historically, textiles dominated. Yet today, revenue has shrunk dramatically.
Over the last 5 years:
- Sales growth: -13% CAGR
- 3-year sales growth: -42% CAGR
- Profit growth (3 years): 42% CAGR
Sales collapsing. Profits rising.
How? That’s where things get spicy.
Before we go further — would you trust an NBFC whose revenue behaves like a roller coaster at EsselWorld?
3. Business Model – WTF Do They Even Do?
Let’s simplify this like explaining to your cousin who thinks stock market means “intraday tips”.
Segment 1: Investments
They invest in:
- Equity instruments
- Government securities
- Share application money
- Other non-current investments
Translation: They buy stakes in companies and financial assets.
Segment 2: Textiles
Through subsidiary Sukartik Clothing:
- Seamless sportswear
- Lounge wear
- Inner wear
- Compression wear
- Knitted fabrics
So they stitch clothes and stitch portfolios.
Now here’s the interesting part:
They also research and invest across:
- IT
- Pharma
- Infrastructure
- Energy
- Retail
That’s ambitious for a ₹118 crore company.
The balance sheet shows investments rising:
- Mar 2024: ₹13.89 Cr.
- Mar 2025: ₹15.82 Cr.
- Sep 2025: ₹17.65 Cr.
So investments are growing even as core sales shrink.
Are they slowly becoming a pure investment vehicle?
Or is textile business
