Hathway Cable & Datacom Downgraded to 'Sell' by MarketsMOJO: Poor Management Efficiency and Negative Operating Profits Raise Concerns

Hathway Cable & Datacom, a smallcap company in the DTH/Cable industry, has recently been downgraded to a 'Sell' by MarketsMOJO on September 18, 2024. This decision was based on several factors that indicate a potential decline in the company's performance.
One of the main reasons for the downgrade is the poor management efficiency of Hathway Cable & Datacom. The company's Return on Equity (ROE) has been consistently low at 3.38%, indicating a lack of profitability per unit of shareholders' funds. Additionally, the company's long-term growth has been stagnant, with only a 4.10% increase in net sales and a 6.64% increase in operating profit over the last 5 years.

From a technical standpoint, the stock is currently in a Mildly Bearish range, with the trend deteriorating from Mildly Bullish on September 18, 2024. The MACD and Bollinger Band technical factors also suggest a bearish outlook for the stock.

Another concerning factor is the negative operating profits of Hathway Cable & Datacom. While the stock has generated a return of 17.45% in the past year, its profits have only risen by 28.6%. This is reflected in the company's PEG ratio of 1.4, indicating that the stock may be overvalued.

Furthermore, despite being a smallcap company, domestic mutual funds hold only 0.17% of Hathway Cable & Datacom. This could suggest that they are not comfortable with the company's current price or business.

In the last 1 year, the stock has underperformed the market, generating a return of 17.45% compared to the market's return of 34.92%. This further supports the decision to downgrade the stock to 'Sell'.

On a positive note, the company has a low Debt to Equity ratio and has shown positive results in the first half of 2024. However, these factors may not be enough to outweigh the other concerning indicators.

In conclusion, Hathway Cable & Datacom's recent downgrade to 'Sell' by MarketsMOJO is based on various factors such as poor management efficiency, negative operating profits, and underperformance in the market. Investors should carefully consider these factors before making any decisions regarding this stock.