Hathway Bhawani Cabletel & Datacom Falls to 52-Week Low of Rs.13

Recent Price Movement and Market Context

The stock has recorded a consecutive three-day decline, resulting in a cumulative return of -15.31% over this short span. Today’s drop of 7.08% further extended the stock’s underperformance relative to its sector, which itself declined by 6.67%. Hathway Bhawani Cabletel & Datacom is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend.

In contrast, the broader market benchmark, the Sensex, opened lower by 359.82 points and is trading at 84,650.54, down 0.53%. Despite this, the Sensex remains close to its 52-week high of 86,159.02, just 1.78% away, and is supported by bullish moving averages with the 50-day moving average positioned above the 200-day moving average.

Long-Term Performance and Valuation Metrics

Over the past year, Hathway Bhawani Cabletel & Datacom’s stock price has declined by 32.08%, a stark contrast to the Sensex’s positive return of 3.87% during the same period. The stock’s 52-week high was Rs.21.7, indicating a substantial reduction in market value over the year.

Financially, the company’s operating profits have shown a compound annual growth rate (CAGR) of -54.54% over the last five years, highlighting a contraction in core earnings. The company’s ability to cover interest expenses is limited, with an average EBIT to interest ratio of 0.32, suggesting challenges in servicing debt obligations.

Profitability and Valuation Considerations

The company reported flat results in the quarter ending September 2025, indicating no significant change in earnings during that period. Return on equity (ROE) stands at 9%, while the price-to-book value ratio is 6.4, suggesting the stock is valued at a premium relative to its book value. However, when compared to its peers’ historical valuations, Hathway Bhawani Cabletel & Datacom is trading at a discount.

Despite the stock’s negative price performance, the company’s profits have risen by 30% over the past year. The price/earnings to growth (PEG) ratio is 0.3, reflecting the relationship between valuation and earnings growth.

Comparative Performance and Shareholding Structure

Hathway Bhawani Cabletel & Datacom has consistently underperformed the benchmark indices over the last three years. Alongside the -32.08% return in the last year, the stock has lagged behind the BSE500 index in each of the previous three annual periods.

The majority ownership of the company remains with its promoters, maintaining a concentrated shareholding structure.

Sector and Industry Context

Operating within the Media & Entertainment sector, Hathway Bhawani Cabletel & Datacom faces a competitive environment where market dynamics and consumer preferences continue to evolve. The sector itself has experienced fluctuations, but the company’s stock has notably lagged behind broader market indices and sector averages.

Given the current trading levels and financial metrics, the stock’s recent decline to Rs.13 marks a significant milestone in its price trajectory over the past year.

Summary of Key Metrics

To summarise, Hathway Bhawani Cabletel & Datacom’s stock has reached a 52-week low of Rs.13, reflecting a year-to-date price decline of over 32%. The company’s operating profit growth over five years shows a contraction, and its interest coverage ratio indicates limited capacity to service debt. Valuation metrics reveal a high price-to-book ratio alongside a modest return on equity. Despite a 30% increase in profits over the last year, the stock’s price performance has not aligned with this earnings growth.

These factors collectively illustrate the challenges faced by the company in the current market environment and provide context for the stock’s recent price movements.

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