Khambatta Securities' research report on Coral India Finance and Housing
One of the growing housing-development and -investment companies in India, Coral India Finance and Housing Limited’s business is divided into two main segments: construction and investment, the latter bringing nearly 80% to operating revenue in FY21. Rental income accounts for more than 50% of investment income, with a 5% escalation clause annually. The company has commenced a residential project at Deolali, Nashik, which includes flats, and bungalows of ~40,000 sq.ft. The Nashik realestate market presents immense opportunities, given its location and robust infrastructure. We expect the company to benefit significantly from growth in the city’s real-estate market.
The stock now trades at an attractive P/E multiple of 8.7x FY23E EPS. We assign a target multiple of 12x FY23E EPS. Our valuation generates a target price of ₹ 62 with 38% potential from levels now, signalling a BUY rating. A complete debt-free entity with a strong financial base and a positive bottom line since inception makes it a promising investment. BUY.
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