Coral Labs. (524506)

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

Key Financials

Strengths

• Moderate trailing P/E of 11.08, not expensive on current earnings
• P/B of 1.18 is close to book value of ₹576.23, offering some asset support
• ROCE of 17.44% indicates reasonable operating capital efficiency
• Latest quarter's net margin of roughly 13.6% on ₹22 Cr sales, if sustained, could aid recovery

Concerns

• Profit growth down 54.72% and sales growth down 6.22% show deteriorating fundamentals
• Piotroski F-Score of 3/9 indicates weak financial health
• ROE of only 6.87% means poor return for equity shareholders
• Dividend yield of 0.34% gives negligible income support while waiting for turnaround

AI Analysis

At ₹680, Coral Labs is a small pharma company with a market cap of just ₹245 Cr. The headline P/E of 11.08 looks cheap, but that can be a value trap unless earnings stabilise. Sales have fallen 6.22% and profits have plunged 54.72%; the latest quarter's ₹22 Cr sales and ₹3 Cr net profit show a business still struggling. Return on equity is only 6.87%, though ROCE of 17.44% suggests the asset base generates decent operating returns. Book value is ₹576.23, so the stock trades at 1.18 times book — not a distressed price, but not deep value either. The Piotroski F-Score of 3/9 is a red flag; it signals weak profitability, efficiency, and balance-sheet health. This is not the kind of business Buffett would seek. Pharma is competitive and product-dependent, and I see no durable moat here. The stock is at the top of its 52-week range of ₹360–₹680.20, meaning the market is optimistic even as fundamentals move the wrong way. With a dividend yield of just 0.34%, there is almost no compensation for waiting. I cannot call this a wonderful business at a fair price; it may be a mediocre business at a price that only looks reasonable. If the next few quarters show sales and profit recovering, and the F-score improves, it might become a turnaround candidate. For now, I would keep it on the watchlist. Graham would demand a margin of safety; at 1.18 times book with falling profits, I don't see one. Let the numbers prove themselves before putting capital at risk.

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