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Coral India Finance and Housing


Coral India Finance and Housing operates primarily in the construction business.

The company generates rental income from owned properties and expects a favourable long-term outlook as demand for real estate increases along with the economy. 

The company reported reasonably stable performance over the last five years – reporting 6cr of operating profits on 7cr of revenue in the last financial year.  It owed no debt but owns several marketable securities including about 6cr worth of Coral Labs stock (as at the end of last financial year).

Management have not bothered to discuss the business and its prospects in the annual report – probably shedding light on their commitment to minority shareholders.

The real estate business is exposed to the construction and economic cycle.  Further, the accounting involves the use of a lot of estimates that requires careful attention when making an investment judgment of the company. 

Of note within the accounts is 30cr under ‘Projects Progress Account’ – for which no explanation was given despite the large amount.  The company also owns 2cr in unsold residential units – for which saleability is unknown.

Management haven’t paid a dividend in the past despite the existence of liquid assets and the lack of meaningful growth.

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