Coastal Roadways (520131)

Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Price-to-book of 0.74, trading well below book value of ₹50.72
• P/E of 9.25 provides a low earnings multiple
• Profit growth of 45.45% and Piotroski score of 6/9 indicate improving fundamentals
• ROCE of 9.25% exceeds ROE, suggesting decent operational asset efficiency

Concerns

• Sales declining at -2% with no top-line momentum
• ROE of only 7.45% is below a satisfactory hurdle rate
• No dividend yield, so shareholders receive no income while waiting
• Market cap of ₹16 Cr makes the stock highly illiquid; promoter holding and debt/equity not disclosed

AI Analysis

Let's look at Coastal Roadways. The price of ₹37.63 sits well below the book value of ₹50.72, so on the surface I am buying a rupee of assets for roughly 74 paise. That attracts me, and a P/E of 9.25 alongside a reported 45% profit growth makes the stock look statistically cheap. But I have to ask: is this a wonderful business at a fair price, or an average business at a discount? Sales growth is negative at -2%, and the return on equity is only 7.45%. A business that cannot earn more than its cost of capital while revenue shrinks is not compounding wealth. It is a cigar butt—cheap, but possibly one puff from empty. The Piotroski score of 6 out of 9 does suggest some improvement in fundamentals, and a PEG of 0.20 indicates the recent profit jump makes the valuation look very reasonable. Yet the full-year earnings implied by the P/E are modest against a ₹16 Cr market cap, and the zero dividend tells me I am not getting paid to wait. I also see Debt/Equity is not disclosed—something I cannot ignore, because hidden leverage can destroy book value. This is not a fast grower or a stalwart. This is an asset play, where the margin of safety relies on the real value of the balance sheet and disciplined capital allocation. In India's competitive road transport sector, I want management to either put the book value to productive use or return cash to shareholders. Until I see sales revive, debt clarity, or a shareholder-friendly action, I would watch this from the sidelines.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer