Why is Coastal Corporat falling/rising?
As of 22-Jul, Coastal Corporation Ltd's stock price is declining at 35.94, down 1.78%, and has underperformed its sector and the market significantly. Despite increased investor participation, the company faces weak fundamentals and high debt, contributing to its poor performance and negative sentiment.
As of 22-Jul, Coastal Corporation Ltd is experiencing a decline in its stock price, currently at 35.94, reflecting a decrease of 0.65 or 1.78%. The stock has underperformed its sector by 2.61% today and is trading below all its moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. Over the past week, the stock has dropped by 3.34%, and it has shown a significant decline of 32.44% year-to-date. Despite a recent increase in investor participation, with delivery volume rising by 165.44% against the 5-day average, the company faces challenges such as a weak long-term fundamental strength indicated by a -13.17% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 8.30 times.In the broader market context, Coastal Corporation's performance has been consistently poor compared to the benchmark, with a return of -35.52% over the past year while the Sensex has gained 2.09%. The stock has underperformed the BSE500 in each of the last three annual periods, highlighting its struggle against market trends. Although the company is trading at a discount compared to its peers' average historical valuations, the overall weak financial indicators, including low profitability and high debt levels, contribute to the negative sentiment surrounding the stock, leading to its current downward trajectory.
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