Garnet construction:-High risk high gain bet

High risk-return bet:-Only go for it if you have got a very high risk apetite.

SCRIPSCAN:Garnet construction

Cmp:91

BSE code:-526727

Present turnover=35crs(2007)
Expected turnover in 08=125crsExpected turnover in 09=240crs

Introduction=

Garnet Construction Limited (GCL is engaged in the business of Industrial and residential construction.The company promoted by Kishan Kumar Kedia and Arun Kumar Kedia has has already acquired about 280 acre of land at Express Highway near Panvel in Navi Mumbai for Residential and Industrial project, which will require a total of 400 acre.Presently the company is involved in a 117 bunglows project at Lonavala.Now what has interested me to recomend the company is the fact that it is having a huge landbank of over 400 acres with company having a mere equity capital of 8crs.With projected revenues of 125cr in 08 its sure to give a huge boost to its earnings and i expect a EPS of around 16 rs.The scrip at rs 90 quotes just a odd 5.5 times its 1 year forward exrnings.With real estate and deleloping companies attracting huge valuation garnet may well continue its journey in the northwards.