Coastal Corporat (COASTCORP)

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

Key Financials

Strengths

• Sales grew 64.89% and profit grew 263.59%, showing strong momentum.
• PEG of 0.12 suggests growth may not be fully priced in.
• Piotroski F-Score of 7/9 indicates decent fundamental health.
• Promoter holding of 42.22% aligns management with minority shareholders.
• P/B of 1.36 is reasonable relative to book value of ₹40.96.

Concerns

• ROE of 4.92% and ROCE of 4.61% indicate weak returns on capital.
• Debt/Equity of 1.54 is high and increases financial risk.
• Latest quarter net margin is very thin: ₹7 Cr profit on ₹303 Cr sales, around 2.3%.
• Dividend yield of only 0.48% offers little downside support.

AI Analysis

Let's begin with the obvious: Coastal Corporat is growing fast. Sales rose 64.89%, profit jumped 263.59%, and a PEG of only 0.12 suggests the market hasn't fully priced that growth. A P/E of 19.73 is moderate, but I didn't become wealthy paying up for commodity businesses without a moat. Seafood is a low-margin, high-volume, capital-hungry trade. The latest quarter shows sales of ₹303 Cr but net profit of just ₹7 Cr—a margin of roughly 2.3%. Any hiccup in prices, logistics, or currency could wipe that out. The balance sheet is my first red flag: Debt/Equity stands at 1.54, with ROE only 4.92% and ROCE 4.61%. These returns are far below what a wonderful business should earn. I would rather have a mediocre business at a wonderful price than a wonderful business at a mediocre price—but this is neither. Book value is ₹40.96, so P/B of 1.36 isn't excessive, and the Piotroski F-score of 7/9 hints at improving fundamentals. Promoter holding of 42.22% is decent alignment. But the dividend yield is just 0.48%; shareholders are not being paid to wait. If the company continues to grow sales while improving margins and deleveraging, there may be value here. As Graham taught, growth is a component of value, but only when it is predictable and backed by earning power. Right now, I see a fast grower with thin earning power and high leverage. I would keep this on my watchlist, monitor whether profitability and debt improve, and demand a larger margin of safety before committing capital.

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