Coral India Finance & Housing: Impressive Growth and Bullish Outlook

Coral India Finance & Housing, a microcap finance company, has recently caught the attention of investors with its upgraded stock call to 'Hold' by MarketsMOJO on November 6, 2023. The company has shown impressive growth in its net sales, with a 118.25% increase, and has declared positive results for the last four consecutive quarters. Its net sales for the half year have grown by 110.74%, while its operating cash flow is at its highest at Rs 21.95 crore.
The stock is currently in a bullish range and has shown a technical trend improvement since November 3, 2023, generating a return of 18.83%. Multiple factors, such as MACD, KST, and OBV, indicate a bullish outlook for the stock.

The majority shareholders of Coral India Finance & Housing are its promoters, and the company has a track record of market-beating performance in both the long term and near term. In the last year, the stock has generated a return of 46.41%, outperforming the BSE 500 index. However, the company's long-term fundamental strength is weak, with an average return on equity (ROE) of 10.17% and poor growth in net sales and operating profit.

Despite its expensive valuation with a price to book value of 1.2 and a ROE of 14.3, the stock is currently trading at a discount compared to its historical valuations. In the past year, while the stock has generated a return of 46.41%, its profits have risen by 68.6%, resulting in a low PEG ratio of 0.1.

Overall, Coral India Finance & Housing shows potential for growth in the near term, but its long-term fundamentals need improvement. Investors should keep a close eye on the company's performance and monitor any changes in its valuation.