Coral India Fin. (CORALFINAC)

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

Key Financials

Strengths

• Trades at P/B 0.58, a 42% discount to book value of ₹59.46.
• Debt-free with Piotroski F-Score 7/9, suggesting sound financial health.
• P/E of 9.43 and PEG of 0.28 offer valuation comfort if the reported profit growth is durable.
• High promoter holding of 74.96% aligns management with minority interests.
• ROCE of 10.47% is meaningfully higher than the current ROE, leaving room for improvement.

Concerns

• ROE of only 6.18% means the large book value is not generating strong shareholder returns.
• Latest quarter had sales and net profit both at ₹4 Cr, implying an abnormal near-100% margin; earnings quality needs scrutiny.
• Sales growth of 6.79% is modest, and dividend yield of 1.18% provides limited compensation while waiting.
• 52-week range of ₹25.01–₹50.90 shows the stock can swing sharply, reflecting uncertainty in a small-cap situation.

AI Analysis

At ₹34.75, Coral India Fin. is available at a substantial discount to its stated book value of ₹59.46 — roughly 42% below. A P/B of 0.58 and a P/E of 9.43 immediately catch a value investor's attention. The balance sheet looks conservative, with no debt, and the Piotroski F-score of 7/9 suggests financial health is not deteriorating. Promoters own 74.96%, so their interests are aligned with minority shareholders. However, this is not a wonderful compounder at the operating level. ROE is only 6.18%, and although ROCE is 10.47%, the gap points toward a business earning modest returns on equity. Sales growth of 6.79% is pedestrian. The 60.94% profit growth is eye-catching but must be judged against a low base; the latest quarter shows only ₹4 Cr of sales and ₹4 Cr of net profit — a near-100% margin that looks abnormal for a diversified commercial services company. It may include non-operating or one-off income, so I would not project it forward. The PEG ratio of 0.28 is attractive only if that profit growth is durable. A dividend yield of 1.18% gives little income support while we wait. In the classic Graham tradition, this is an asset play first: you are buying ₹1 of book value for about 58 paise. The key question is whether management can turn that asset base into higher earnings. If not, shareholders may wait a long time for the price to converge to book value. The 52-week range of ₹25.01 to ₹50.90 reminds me that small, illiquid situations can misprice and also disappoint. I would need clearer evidence of earnings quality and a plan to improve ROE before taking a large position.

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