Coastal Corporation Limited

Consumer Defensive — Packaged Foods · NSE

₹36.75+₹0.22 (+0.60%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Coastal Corporation Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Coastal Corporation Limited engages in the process, production, and distribution of sea food products in India. It offers sea caught and aquaculture shrimps, including sea tiger, whites, pink brown, vannamei, and black tiger shrimps.

IndustryPackaged Foods

SectorConsumer Defensive

Employees1,353

Annual revenue₹905 Cr

How does it make money?

Turns over ₹905 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 1,353 employees supports ₹66.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin9.1%

Net margin2.9%

Revenue / employee₹66.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

TATA CONSUMER PRODUCT LTDP/E 59.3x · ROE 7.5%

DABUR INDIA LTDP/E 34.7x · ROE 17.2%

What is its competitive advantage?Some evidence

ROCE of 15.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.9%

ROE9.4%

Peer median ROE51.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +169% while net margin moved +48% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+169%

Margin effect+48%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 1.70x is high — earnings must service borrowings before shareholders see anything
• Current ratio of 1.13 covers short-term liabilities, without much slack
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only 2.1x — little room if profits dip
✗ Debt has grown 39.9% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

58/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

84/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

7.6x

3Y Median

54.4x

40 monthly readings · mean 54.5x · range 9.2x–89.9x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 86% below its 3y median of 54.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 85% below the peer median of 51.7x.

vs. its own history

Cheap

54.4x median over 40 months · -86%

vs. sector peers

Cheap

51.7x median of 4 peers · -85%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

7.6x

P/B

0.87x

EV/EBITDA

8.4x

PEG

0.13

Dividend Yield

0.76%

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 2.7% to 9.4%.
Return on capital is rising
ROCE has improved from 7.7% to 15.9%.
Valuation below its historical average
At 7.6x the stock trades 86% below its own median of 54.4x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 174% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 296% against revenue growth of 169% — customers are taking longer to pay.

Red Flags

5 items require attention · 5 high

🔴Debt has risen sharplyFinancial
Total debt is up 174% over 3 years, from ₹176 Cr to ₹481 Cr.
🔴High leverageFinancial
Debt/Equity of 1.70x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 296% against revenue up 169% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 86% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 85% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 296% against revenue up 169%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
5 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 29% a year✓ 39.0% CAGR
Latest reported year was 38.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 9.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 5.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹167 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.1x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹246 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.6x

Cheap

Cheap against the generic band

P/B Ratio

0.87x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.82

Profitable

Profitable on a per-share basis

ROE

9.4%

Moderate

Moderate capital efficiency

ROCE

15.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.70x

High

High leverage

Revenue Growth (YoY)

38.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

101.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.76%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹167 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹36.75

Operating Margin

6.4%

Average

Average margins

Net Margin

3.1%

Average

Average bottom-line conversion

Current Ratio

1.13

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.36

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

36.9 / 39.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹337 Cr	₹413 Cr	₹594 Cr	₹905 Cr	+39.0%
EBITDA	₹31 Cr	₹35 Cr	₹40 Cr	₹83 Cr	+39.1%
EBITDA Margin	9.1%	8.5%	6.7%	9.1%	—
PAT (Net Profit)	₹7 Cr	₹5 Cr	₹4 Cr	₹27 Cr	+58.5%
EPS	₹1.14	₹0.68	₹0.67	₹3.98	+51.8%
ROE	2.7%	1.7%	1.7%	9.4%	—
ROCE	7.7%	5.9%	7.1%	15.9%	—
Total Debt	₹176 Cr	₹333 Cr	₹411 Cr	₹481 Cr	+39.9%
Free Cash Flow	-₹95 Cr	-₹145 Cr	-₹53 Cr	-₹167 Cr	—

🟢 Revenue has grown at 39.0% a year over 3 years.

🟢 EBITDA has grown at 39.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 9.1% over 3 years.

🟢 PAT (Net Profit) has grown at 58.5% a year over 3 years.

🟢 EPS has grown at 51.8% a year over 3 years.

🟢 ROE has risen from 2.7% to 9.4% over 3 years (+6.7 pts).

🟢 ROCE has risen from 7.7% to 15.9% over 3 years (+8.2 pts).

🔴 Total Debt has grown at 39.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹841 Cr

Total Liabilities

₹557 Cr

Total Debt

₹481 Cr

Cash & Equivalents

₹29 Cr

Operating Cash Flow

-₹20 Cr

Capex

-₹147 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

53.9%

Corporate Actions

Dividend Rate

₹0.28

Ex-Dividend Date

20 Aug 2026

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

1 positive1 mixed4 general

Coastal Corporation Share Price Near Low as RSI Stays Weak

Univest, 08 Oct

Shrimp Stocks Surge as Avanti, Apex, Coastal End Week Strong

HDFC Sky, 17 Apr

Markets Rally, But Coastal Corporation Ltd Sinks to 52-Week Low in Stock-Specific Sell-Off

MarketsMojo, 09 Oct

Coastal Corporation Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Coastal Corporation Q1 Results: Board Approves Unaudited Financials

scanx.trade, 04 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Coastal Corporation Limited Recommends Final Dividend for the Financial Year 2025-2026

www.marketscreener.com, 30 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.5/20

🔴Financial HealthStretched6/20

🟢GrowthStrong18.5/20

🟡ProfitabilityModerate7.1/15

🟢ValuationAttractive13.2/15

🔴RiskHigh3.7/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 5 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 29% a year39.0% CAGR
✓EBITDA margin holds above 7%9.1%
✗Debt / EBITDA falls below 3x5.8x
✗Free cash flow remains positive-₹167 Cr
✗Interest cover stays above 3x2.1x