Coral India Finance & Housing downgraded to 'Sell' by MarketsMOJO due to weak fundamentals and expensive valuation

Coral India Finance & Housing, a microcap company in the finance/NBFC industry, has recently been downgraded to a 'Sell' by MarketsMOJO on February 1, 2024. This decision was based on several factors, including weak long-term fundamental strength with an average Return on Equity (ROE) of 10.17%, poor long-term growth in net sales and operating profit, and a very expensive valuation with a 1.5 price to book value.
Despite generating a return of 86.27% in the past year, the company's profits have only risen by 68.6%, resulting in a low PEG ratio of 0.2. Additionally, the stock is currently trading at a discount compared to its average historical valuations.

On a positive note, Coral India Finance & Housing declared very positive results in September 2023, with a growth in net sales of 118.25%. The company has also consistently declared positive results for the last four quarters, with the highest operating cash flow of Rs 21.95 crore.

Technically, the stock is in a mildly bullish range, with both the MACD and KST technical factors showing a bullish trend. The majority shareholders of the company are the promoters, indicating their confidence in the company's performance.

In terms of market performance, Coral India Finance & Housing has outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, showcasing its market-beating performance in both the long-term and near-term. However, considering the current factors, MarketsMOJO has downgraded the stock to a 'Sell' and advises investors to proceed with caution.