Coastal Corporation's Q3 Financial Report Shows Mixed Results, Investors Advised to Proceed with Caution

Coastal Corporation, a microcap company in the aquaculture industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' rating by MarketsMOJO.

According to the financial report, Coastal Corporation's performance for the quarter was flat, with a score of -5 compared to -1 in the previous quarter. However, there are some positive aspects to the company's financials. The net sales for the quarter were the highest in the last five quarters, at Rs 154.77 crore, and have shown a growth of 38.98% year on year. The company's cash and cash equivalents have also increased, indicating an improvement in short-term liquidity.

On the other hand, there are some areas of concern for Coastal Corporation. The profit before tax less other income has fallen by 115.05% year on year, and the profit after tax has also decreased by 88.6% year on year. The interest cost has increased by 21.84% quarter on quarter, which could be a result of increased borrowings. Additionally, the company's non-operating income is 145.16% of the profit before tax, which suggests that the company's income from non-business activities is high and may not be sustainable in the long run. The debt-equity ratio is also at its highest in the last five half-yearly periods, indicating that the company may be relying heavily on borrowing to fund its operations.

Overall, Coastal Corporation's financial performance for the quarter ending September 2024 has been mixed, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.