Stock Price Movement and Market Context
The stock has been on a downward trajectory, losing 4.15% over the past two trading sessions. Today's fall of 3.10% aligns with the sector's decline, where the DTH/Cable segment dropped by 3.07%. Hathway Cable & Datacom Ltd is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day marks, signalling sustained bearish momentum.
In contrast, the broader Sensex index, despite a negative close at 82,773.27 points (-0.57%), remains 4.09% shy of its 52-week high of 86,159.02. However, the Sensex itself has been on a three-week losing streak, down 3.48%, and is trading below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating some underlying market resilience.
Long-Term Performance and Relative Underperformance
Over the last year, Hathway Cable & Datacom Ltd has delivered a return of -27.18%, significantly underperforming the Sensex's positive 7.40% gain. This underperformance extends over longer periods as well, with the stock lagging behind the BSE500 index across three years, one year, and three months. The 52-week high for the stock was Rs.17.95, highlighting the extent of the recent decline.
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Financial Metrics and Fundamental Assessment
Hathway Cable & Datacom Ltd's financial profile reflects several areas of concern. The company has exhibited a negative compound annual growth rate (CAGR) of -35.31% in operating profits over the past five years, indicating a contraction in core earnings. Its ability to service debt is weak, with an average EBIT to interest ratio of -2.51, suggesting that earnings before interest and taxes are insufficient to cover interest expenses.
Profitability metrics also remain subdued. The average return on equity (ROE) stands at 2.84%, signalling limited profitability generated per unit of shareholders' funds. Quarterly results for December 2025 showed flat performance, with the PBDIT at Rs.77.41 crore, the lowest recorded, and the operating profit to net sales ratio at 14.43%, also at a low point. The debtors turnover ratio for the half-year was 4.77 times, the lowest in recent periods, indicating slower collection efficiency.
Shareholding and Market Perception
Despite the company's size, domestic mutual funds hold no stake in Hathway Cable & Datacom Ltd. Given that domestic mutual funds typically conduct thorough research and maintain positions in companies with favourable prospects, their absence may reflect reservations about the stock's valuation or business outlook at current price levels.
Valuation and Comparative Analysis
The stock trades at a price-to-book value of 0.5, suggesting a fair valuation relative to its book value but at a discount compared to peers' historical averages. The return on equity of 2.2% further supports this moderate valuation stance. Over the past year, while the stock price declined by 27.18%, the company's profits increased by 13.8%, resulting in a price/earnings to growth (PEG) ratio of 1.4. This indicates that earnings growth has not translated into stock price appreciation, reflecting market caution.
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Mojo Score and Rating Update
MarketsMOJO assigns Hathway Cable & Datacom Ltd a Mojo Score of 20.0, categorising it as a Strong Sell. This rating was upgraded from Sell to Strong Sell on 7 January 2026, reflecting deteriorating fundamentals and market performance. The company's market capitalisation grade is 3, indicating a mid-tier size within its sector.
Sectoral and Broader Market Trends
The Media & Entertainment sector, in which Hathway operates, has faced headwinds recently, with the DTH/Cable segment declining by 3.07% today. The broader market's mixed signals, including the Sensex's recent losses, add to the challenging environment for the stock. Hathway's performance has been notably weaker than both its sector and the overall market indices.
Summary of Key Concerns
In summary, Hathway Cable & Datacom Ltd's fall to a 52-week low of Rs.11.53 is underpinned by sustained declines in operating profits, weak debt servicing capacity, and limited profitability metrics. The stock's valuation discounts and absence of domestic mutual fund participation further highlight market caution. Its underperformance relative to the Sensex and sector peers over multiple time frames underscores the challenges faced by the company in maintaining investor confidence.
Conclusion
While Hathway Cable & Datacom Ltd remains a significant player in the Media & Entertainment sector, its recent price action and fundamental indicators reflect a period of subdued performance and valuation pressures. The stock's current position below all major moving averages and its new 52-week low mark a notable phase in its market journey.
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