Why is Coastal Corporat falling/rising?

Aug 01 2025 10:15 PM IST
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As of 01-Aug, Coastal Corporation Ltd's stock price is Rs 34.50, down 2.93%, and has fallen 6.12% over the last two days. The stock has significantly underperformed over the past year and three years, with weak fundamentals and high debt concerns contributing to ongoing investor lack of confidence.
As of 01-Aug, Coastal Corporation Ltd is experiencing a decline in its stock price, currently at Rs 34.50, which reflects a decrease of Rs 1.04 or 2.93%. The stock has been underperforming, having fallen consecutively for the last two days, resulting in a total decline of 6.12% during this period. It opened with a loss of 3.21% today and is trading close to its 52-week low, just 2.32% above Rs 33.7. Over the past year, the stock has generated a return of -43.61%, significantly underperforming against the benchmark, the Sensex, which has seen a decline of only 1.55%. Additionally, the stock's performance has been weak over longer periods, with a -47.33% return over three years compared to the Sensex's 38.69% gain.

In the broader market context, while the aquaculture sector has also seen a decline of 3.02%, Coastal Corporation's stock is trading below all key moving averages, indicating persistent weakness. The company has a high Debt to EBITDA ratio of 8.30 times, which raises concerns about its ability to service debt, and its return on equity is low at 4.66%, suggesting poor profitability. Despite having an attractive valuation with a low enterprise value to capital employed ratio, the stock's long-term fundamentals are weak, evidenced by a -13.17% CAGR growth in operating profits over the last five years. This combination of factors contributes to the stock's ongoing decline and reflects a lack of confidence among investors.
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