Coral India Finance & Housing Shows Consistent Growth

Coral India Finance & Housing, a microcap finance company, has recently caught the attention of investors as its stock call has been upgraded to 'Hold' by MarketsMOJO on December 15, 2023. This upgrade comes after the company declared very positive results in September 2023, with a growth in net sales of 118.25%. In fact, the company has consistently shown positive results for the last four quarters, with net sales growing at a rate of 110.74% and operating cash flow at its highest at Rs 21.95 crore.
Technically, the stock is in a bullish range and has shown a significant improvement since December 14, 2023, generating a return of 19.99%. This can be attributed to multiple factors such as MACD, Bollinger Band, and KST, all indicating a bullish trend.

The majority shareholders of Coral India Finance & Housing are its promoters, which is a positive sign for investors. The stock has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months, showcasing its market-beating performance in the long term as well as the near term.

However, the company's long-term fundamental strength is weak, with an average return on equity (ROE) of 10.17%. Its net sales and operating profit have also shown poor growth at an annual rate of 16.76% and 5.61%, respectively. Additionally, with a ROE of 14.3, the stock is currently trading at a very expensive valuation with a price to book value of 1.5. However, it is still trading at a discount compared to its average historical valuations.

Despite its expensive valuation, the stock has generated a return of 71.97% in the last year, with profits rising by 68.6%. This gives the company a PEG ratio of 0.2, indicating that it may still have potential for growth. Overall, while Coral India Finance & Housing may not be a strong recommendation, it is certainly a stock worth keeping an eye on for potential future growth.