GTPL Hathway Ltd: Valuation Shifts Signal Fair Price Amidst Market Underperformance

Valuation Metrics: A Closer Look

As of early February 2026, GTPL Hathway’s price-to-earnings (P/E) ratio stands at 21.15, a figure that signals a moderate premium compared to its historical averages but remains within a reasonable range for the media industry. The price-to-book value (P/BV) ratio is currently 0.76, indicating the stock is trading below its book value, which traditionally suggests undervaluation. However, this metric alone does not capture the full picture, especially given the company’s subdued return on capital employed (ROCE) of 3.83% and return on equity (ROE) of 3.54%, both of which are relatively low and point to operational challenges.

Enterprise value to EBITDA (EV/EBITDA) is another critical metric, with GTPL Hathway reporting a notably low 2.66 multiple. This contrasts sharply with the enterprise value to EBIT (EV/EBIT) ratio of 18.70, highlighting the company’s capital structure and earnings before interest and taxes. The divergence between these multiples suggests that while EBITDA margins may be stable, EBIT margins and interest costs could be exerting pressure on profitability.

Comparative Peer Analysis

When benchmarked against peers within the Media & Entertainment sector, GTPL Hathway’s valuation appears more balanced. Several competitors, including Balaji Telefilms and T.V. Today Network, are classified as “Risky” with P/E ratios of 15.25 and 25.1 respectively, and some peers are loss-making, such as NDTV and Zee Media, which lack meaningful P/E ratios. Notably, Vashu Bhagnani stands out as “Very Expensive” with a P/E ratio exceeding 141, underscoring the wide valuation dispersion within the sector.

GTPL Hathway’s PEG ratio remains at 0.00, reflecting either a lack of meaningful earnings growth or data limitations, which further complicates valuation assessments. Dividend yield at 2.56% offers some income cushion for investors, but this yield must be weighed against the company’s modest profitability and growth outlook.

Stock Price and Market Performance

The stock price of GTPL Hathway closed at ₹78.12 on 9 February 2026, marginally up by 0.30% from the previous close of ₹77.89. The 52-week trading range has been wide, with a high of ₹133.75 and a low of ₹76.40, reflecting significant volatility over the past year. This volatility is mirrored in the stock’s returns, which have underperformed the broader Sensex index across multiple time horizons. For instance, the stock has declined 22.32% year-to-date and 29.65% over the past year, while the Sensex has gained 7.07% over the same period. Over five years, GTPL Hathway’s stock has fallen 41.51%, contrasting sharply with the Sensex’s robust 64.75% gain.

Mojo Score and Rating Evolution

GTPL Hathway’s current Mojo Score is 34.0, which corresponds to a “Sell” grade, an upgrade from the previous “Strong Sell” rating assigned on 22 September 2025. This improvement in rating reflects a slight easing of concerns but still signals caution for investors. The Market Cap Grade is 4, indicating a mid-tier market capitalisation relative to other listed companies in the sector.

The upgrade in rating is primarily driven by stabilisation in valuation metrics and a modest recovery in operational performance. However, the company’s low ROCE and ROE continue to weigh on its investment appeal, especially when compared to more dynamic peers or other sectors with stronger fundamentals.

Sectoral and Market Context

The Media & Entertainment sector has faced multiple headwinds, including shifting consumer preferences, regulatory challenges, and increased competition from digital platforms. These factors have contributed to valuation compression across many companies, with GTPL Hathway’s shift from an “attractive” to a “fair” valuation grade emblematic of broader sector sentiment.

Investors should also consider the company’s operational metrics in the context of the sector’s evolving landscape. While GTPL Hathway maintains a relatively low EV to Sales ratio of 0.31, signalling potential undervaluation on a sales basis, the low profitability ratios and subdued growth prospects temper enthusiasm.

Investment Implications and Outlook

GTPL Hathway’s transition in valuation grading from attractive to fair suggests that while the stock is no longer deeply undervalued, it still offers some value relative to its sector peers, many of whom are classified as risky or very expensive. The company’s modest dividend yield of 2.56% may appeal to income-focused investors, but the low returns on capital and equity caution against aggressive accumulation.

Given the stock’s underperformance relative to the Sensex over multiple time frames, investors should weigh the risks of continued sectoral disruption and company-specific challenges against the potential for valuation recovery. The current P/E of 21.15 is not excessive but does not provide a significant margin of safety, especially in a sector marked by volatility and rapid change.

For investors seeking exposure to the Media & Entertainment space, a diversified approach or consideration of higher-quality peers with stronger profitability and growth metrics may be prudent. GTPL Hathway’s fair valuation grade and improved Mojo rating indicate some stabilisation, but the company remains a cautious proposition in the current market environment.

Conclusion

In summary, GTPL Hathway Ltd.’s valuation shift from attractive to fair reflects a nuanced market reassessment amid sector challenges and company performance metrics. While the stock is not deeply undervalued, it remains competitively priced relative to many peers facing greater risks. Investors should carefully analyse the company’s financial health, sector dynamics, and relative valuation before making investment decisions.

Continued monitoring of profitability trends, operational improvements, and sector developments will be essential to gauge whether GTPL Hathway can regain a more favourable valuation status in the medium term.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →