Coral Labs

I am holding Coral Lab 455 @ 475 since October 2015. Is there any possibility of reaching at least 500 prior to Q4 results? Please advise.

 

Stock is good fundamentals. It has given multibagger return. Even this year return is 35% and 2 years it is 344%. So stocks is cooling down now. It is still micro-cap stock with mcap of Rs. 150 cr. It is in formulation business and India FDA problem is there. Better hold stock patiently. We can review after results.

 

If the buyer bought the stock at 475 in October 2015 then how can the stock give 35% this year. Or else there was a sharp correction following his recommendation. Now I do not intrude into any conversation but in my opinion the reference has to be made from his purchase price. I am only saying this because I had reviewed this stock Coral Lab extensively.
This company makes "generic" drugs for the Indian market. However unlike some other small companies the fundamentals of Coral Labs are somewhat good. I has two manufacturing units and is zero debt company. Also the company has consistently paid dividend and has increased dividend payout ratio. However business model of the company is not very expansive. I did not see any focus on expanding business especially on exports. At trailing PE of close to 14 Coral is not very cheap if we go by market standards. I would suggest you look at some front line pharma company if you want to have a better chance at capital appreciation. But yes I would suggest you wait till results. There maybe some upside if results are good and you can exit close to your purchase price. Also please keep one thing in mind. A small market cap necessarily does not mean a good investment idea.