Hathway Cable & Datacom Ltd is Rated Strong Sell

Current Rating and Its Implications for Investors

The Strong Sell rating assigned to Hathway Cable & Datacom Ltd indicates a cautious stance for investors. This rating suggests that the stock is expected to underperform the broader market and peers in the Media & Entertainment sector over the near to medium term. Investors should consider this recommendation as a signal to avoid initiating new positions or to consider exiting existing holdings, depending on their risk tolerance and portfolio strategy.

MarketsMOJO’s rating system integrates multiple parameters to arrive at this conclusion, including quality of earnings, valuation metrics, financial trends, and technical analysis. Each of these factors contributes to a comprehensive assessment of the stock’s investment potential.

Quality Assessment: Below Average Fundamentals

As of 10 February 2026, Hathway Cable & Datacom Ltd’s quality grade is assessed as below average. The company has demonstrated weak long-term fundamental strength, with a compounded annual growth rate (CAGR) of operating profits declining by approximately 35.31% over the past five years. This negative growth trajectory highlights challenges in sustaining profitability and operational efficiency.

Further, the company’s ability to service its debt remains poor, with an average EBIT to interest ratio of -2.51, signalling that operating earnings are insufficient to cover interest expenses. This financial strain is a critical concern for investors, as it may limit the company’s capacity to invest in growth or withstand economic downturns.

Return on equity (ROE) is also subdued, averaging just 2.84%, indicating low profitability relative to shareholders’ funds. This metric suggests that the company is generating limited value for its equity investors, which weighs heavily on the quality score.

Valuation: Fair but Not Compelling

The valuation grade for Hathway Cable & Datacom Ltd currently stands at fair. While the stock price may not appear excessively expensive relative to earnings or book value, the valuation does not offer a compelling margin of safety given the company’s weak fundamentals and subdued growth prospects.

Investors should note that a fair valuation in the context of deteriorating financial health and negative earnings trends does not constitute an attractive entry point. The stock’s price may reflect some of these risks, but the absence of undervaluation limits upside potential.

Financial Trend: Flat Performance Amidst Challenges

The financial trend for Hathway Cable & Datacom Ltd is currently flat, reflecting a lack of meaningful improvement in key financial metrics. The latest quarterly results ending December 2025 show flat performance, with operating profit margins at a low 14.43% and quarterly PBDIT at Rs 77.41 crore, both among the lowest levels recorded.

Additionally, the debtor turnover ratio for the half year stands at a low 4.77 times, indicating slower collection cycles and potential working capital inefficiencies. These factors collectively suggest that the company is struggling to generate growth or improve operational efficiency in the near term.

Technical Outlook: Bearish Momentum

From a technical perspective, Hathway Cable & Datacom Ltd is rated bearish. The stock’s price performance over recent periods has been disappointing, with a 1-year return of -19.89% and a 3-month decline of -10.11%. Year-to-date, the stock has fallen by 4.33%, underperforming key benchmarks such as the BSE500 index.

Shorter-term movements show some volatility, including a 1-day gain of 0.93% and a 1-week rise of 7.87%, but these are insufficient to offset the broader downtrend. The bearish technical grade reflects investor sentiment and market momentum, which currently do not favour the stock.

Stock Returns and Market Position

As of 10 February 2026, Hathway Cable & Datacom Ltd’s stock returns paint a challenging picture for investors. The stock has delivered negative returns across multiple time horizons: -1.49% over one month, -17.34% over six months, and nearly -20% over the past year. This underperformance relative to the broader market and sector peers underscores the risks associated with holding the stock at present.

Moreover, domestic mutual funds hold no stake in the company, which may reflect a lack of confidence from institutional investors who typically conduct thorough due diligence. This absence of institutional backing further emphasises the cautious outlook on the stock.

What This Means for Investors

Investors considering Hathway Cable & Datacom Ltd should weigh the implications of the Strong Sell rating carefully. The combination of below-average quality, fair valuation without a margin of safety, flat financial trends, and bearish technical signals suggests limited upside and elevated risk.

For risk-averse investors or those seeking stable growth, the stock’s current profile may not align with their investment objectives. Conversely, speculative investors might view the depressed valuation and recent price volatility as potential opportunities, but such positions would require a high tolerance for risk and close monitoring.

It is also important to note that the rating and analysis reflect the company’s status as of 10 February 2026, incorporating the latest available data rather than historical snapshots. This ensures that investment decisions are based on the most relevant and timely information.

Company Profile and Market Context

Hathway Cable & Datacom Ltd operates within the Media & Entertainment sector and is classified as a small-cap company. Despite its size, the company faces significant challenges in maintaining profitability and growth, as evidenced by its financial metrics and market performance.

The stock’s Mojo Score currently stands at 20.0, down from 31.0 prior to the rating update on 07 January 2026. This score reflects the aggregated assessment of the company’s fundamentals, valuation, financial trends, and technical outlook, reinforcing the Strong Sell recommendation.

Given the sector’s competitive dynamics and evolving consumer preferences, Hathway Cable & Datacom Ltd will need to address its operational inefficiencies and financial weaknesses to improve its investment appeal.

Summary

In summary, Hathway Cable & Datacom Ltd is rated Strong Sell by MarketsMOJO as of the latest update on 07 January 2026. The current analysis, based on data as of 10 February 2026, highlights weak fundamentals, fair but unappealing valuation, flat financial trends, and bearish technical indicators. These factors collectively suggest that the stock is likely to underperform and warrants caution from investors.

Investors should consider these insights carefully in the context of their portfolio strategies and risk appetite, recognising that the company faces significant headwinds in the near term.

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