Hathway Cable & Datacom Ltd Drops 15.10%: 8 Key Factors Behind the Steep Decline

Jan 19: Stock Hits 52-Week Low Amidst Continued Underperformance

Hathway Cable & Datacom Ltd’s shares opened the week under pressure, falling to a 52-week low of Rs.11.56 on 19 January 2026. The stock closed at Rs.11.92, down 1.08% on the day, mirroring weakness in the media and entertainment sector and broader market declines. The Sensex fell 0.49% to 36,650.97, but Hathway’s underperformance was notable given its position below all key moving averages and a deteriorating fundamental profile. The company’s operating profits have contracted at a CAGR of -35.31% over five years, and its EBIT to interest coverage ratio remains negative at -2.51, signalling ongoing financial strain.

Jan 20: Fresh 52-Week Low of Rs.11.53 Amid Sectoral Weakness

The downtrend intensified on 20 January as Hathway’s stock price slipped further to Rs.11.53, marking a new 52-week low. The stock declined 4.36% on the day, outpaced by a 1.82% drop in the Sensex. Sectoral weakness in the DTH and cable segment compounded the pressure, with the sector falling 3.07%. Despite a modest sales growth of 3.90% over five years, the company’s profitability metrics remain weak, with a return on equity averaging just 2.84% and operating profit margins shrinking to 14.43% in the latest quarter.

Jan 21: Continued Downtrend Pushes Stock to Rs.11.16 Low

On 21 January, Hathway’s shares declined further to Rs.11.16, marking another 52-week low and a three-day cumulative loss of 7.22%. The stock’s 2.19% drop on the day aligned with a 2.16% fall in the DTH/cable sector and a 0.62% decline in the Sensex. The company’s financial health remains fragile, with a negative EBIT to interest ratio and a price-to-book value of 0.5, reflecting market scepticism. Domestic mutual funds hold no stake in the company, underscoring limited institutional confidence.

Jan 22: Slight Intraday Recovery Fails to Reverse Downtrend

Despite a modest intraday gain of 3.00% on 22 January, closing at Rs.11.32, Hathway’s stock remained below all key moving averages and continued its downward trajectory. The broader market showed mixed signals, with the Sensex gaining 0.76% but still trading below its 52-week high. Operational efficiency concerns persist, with the debtors turnover ratio at a low 4.77 times and operating profit margins at historic lows. The company’s Mojo Score remains at 20.0 with a Strong Sell rating, reflecting deteriorated fundamentals.

Jan 23: Sharp Decline to All-Time Low of Rs.10.6 Amid Market Weakness

The week culminated in a sharp sell-off on 23 January, with Hathway’s stock plunging 9.63% to close at Rs.10.23, hitting an all-time low intraday price of Rs.10.6. This 4.68% underperformance relative to the sector’s 3.23% decline and the Sensex’s 0.86% fall highlighted intensified selling pressure. The stock’s failure to hold above any major moving averages signals sustained bearish momentum. Despite a 13.8% increase in profits over the past year, the market remains cautious, reflected in the stock’s PEG ratio of 1.4 and absence of domestic mutual fund holdings.

Key Takeaways

Hathway Cable & Datacom Ltd’s week was marked by persistent declines, with the stock losing 15.10% against a 3.31% drop in the Sensex, highlighting significant underperformance. The repeated breaches of 52-week lows and the all-time low of Rs.10.6 underscore sustained selling pressure and weak investor sentiment.

Fundamentally, the company faces serious challenges: operating profits have contracted sharply over five years, and the EBIT to interest coverage ratio remains negative, indicating difficulty in servicing debt. Profitability metrics such as ROE remain modest at 2.84%, while operational efficiency ratios like debtor turnover have deteriorated, signalling liquidity concerns.

Despite a modest increase in profits over the past year, the stock’s valuation remains discounted, with a price-to-book ratio of 0.5 and a PEG ratio around 1.4. The absence of domestic mutual fund holdings further reflects institutional caution. Technical indicators show the stock trading below all major moving averages, reinforcing the bearish outlook.

Conclusion

The week’s price action for Hathway Cable & Datacom Ltd reflects a confluence of weak financial fundamentals, sectoral headwinds, and cautious market sentiment. The stock’s steep 15.10% decline and new lows highlight ongoing challenges in profitability, debt servicing, and operational efficiency. While some profit growth has been recorded, it has not translated into positive price momentum or institutional support. The company’s Strong Sell rating and low Mojo Score further emphasise the cautious stance prevailing among investors. Until there is a marked improvement in financial health and market conditions, Hathway’s shares are likely to remain under pressure.

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