Garnet Intl. (512493)

Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• ROE of 13.70% is respectable on a trailing basis.
• Piotroski F-Score of 6/9 suggests moderate financial health.
• Trailing profit growth of 157.89% shows earnings can move sharply higher, though from an unreliable base.

Concerns

• Latest quarter sales and net profit are both ₹0 Cr — no current income stream to value.
• P/B of 7.65 against book value of ₹13.13 leaves no margin of safety.
• Sales growth of -90.21% and P/E of 26.84 indicate a collapsed top line with expensive valuations.
• ROCE of 4.27% and zero dividend yield provide little return on capital employed.

AI Analysis

Reading Garnet Intl, I'm reminded of Graham's dictum: price is what you pay, value is what you get. Here, I'm being asked to pay ₹100.44 for a company with book value of ₹13.13. For an investment company, book value should be the anchor. At 7.65 times book, there is no margin of safety. The latest quarter shows sales of ₹0 Cr and net profit of ₹0 Cr. That means there is no current operating engine to justify this valuation. The trailing P/E of 26.84 is expensive, and the 157.89% profit growth is misleading when the latest quarter is empty and sales have fallen 90.21%. A PEG of 0.17 is a statistical illusion, not a signal. ROE is 13.70%, but ROCE of 4.27% tells me the underlying capital is earning very little. No dividend means I get no cash return while I wait. Debt/equity is unavailable; I can't assess leverage risk. Piotroski F-Score 6/9 is moderate but not enough to offset the valuation. FairStock Score is unavailable due to insufficient data, which is itself a warning. This looks like a cyclical investment vehicle, not an operating business with a durable moat. The 52-week range of ₹42 to ₹134 shows how unpredictable the market price can be. As value investors, we want certainty and tangible assets at a discount. Here I find neither. I would keep this on the 'too hard' pile unless I can see a clear path to real net asset value, consistent earnings, and sensible capital allocation. I need to see actual quarterly income, a growing book value, and a price that offers a cushion. Without that, no matter how high profit growth appears, I cannot justify owning Garnet Intl at this price.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer