Coastal Corporation Hits 52-Week Low Amidst Ongoing Financial Struggles and High Debt Levels

Coastal Corporation, a microcap player in the FMCG sector, has seen significant activity today, hitting a new 52-week low of Rs. 33.17. This decline reflects a challenging year for the company, with a staggering 46.03% drop in stock value over the past year, contrasting sharply with the Sensex's modest gain of 0.40% during the same period.
Despite today's performance, where Coastal Corporation outperformed its sector by 1.42%, the stock remains below its moving averages across all time frames, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. The company's long-term fundamentals are concerning, highlighted by a -13.17% compound annual growth rate (CAGR) in operating profits over the last five years and a high debt-to-EBITDA ratio of 8.30 times, indicating challenges in servicing its debt.

Additionally, the company's return on equity stands at a low 4.66%, suggesting limited profitability. With a return on capital employed (ROCE) of just 2.9, Coastal Corporation is trading at a discount compared to its peers, yet it continues to struggle with consistent underperformance against market benchmarks.