Hathway Cable & Datacom Ltd Hits All-Time Low Amid Continued Downtrend

Market Performance and Price Movement

On 23 Jan 2026, Hathway Cable & Datacom Ltd recorded a sharp one-day decline of 6.98%, substantially underperforming the Sensex which fell by 0.87% on the same day. This drop also outpaced the sector’s fall of 3.45% in the DTH/Cable segment, underscoring the stock’s relative weakness. The share price has now breached all key moving averages, trading below the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend.

Over multiple time horizons, the stock’s performance has been notably disappointing. The one-week return stands at -12.61% versus the Sensex’s -2.36%, while the one-month and three-month returns are -17.61% and -23.53% respectively, compared to the Sensex’s -4.60% and -3.50%. The year-to-date decline is 15.49%, significantly worse than the Sensex’s 4.25% fall.

Longer-term figures reveal a stark contrast with the broader market. Over the past year, Hathway Cable & Datacom Ltd’s stock has lost 30.63%, while the Sensex gained 6.63%. The three-year and five-year returns are -34.80% and -66.30% respectively, compared to Sensex gains of 33.89% and 66.93%. Over a decade, the stock has declined by 71.35%, whereas the Sensex has surged by 233.92%.

Financial Metrics and Profitability Analysis

Hathway Cable & Datacom Ltd’s financial indicators reflect ongoing pressures on profitability and operational efficiency. The company’s operating profits have contracted at a compounded annual growth rate (CAGR) of -35.31% over the last five years, signalling a weakening earnings base. Quarterly results for December 2025 showed flat performance, with PBDIT at a low Rs.77.41 crore and operating profit to net sales ratio at 14.43%, the lowest recorded levels.

The debtor turnover ratio for the half-year period stands at 4.77 times, indicating slower collection cycles relative to industry norms. Return on Equity (ROE) remains subdued at an average of 2.84%, highlighting limited profitability generated per unit of shareholder funds. The company’s ability to service debt is also constrained, with an average EBIT to interest ratio of -2.51, pointing to challenges in covering interest expenses from earnings.

Despite its market presence, domestic mutual funds hold no stake in Hathway Cable & Datacom Ltd, which may reflect a cautious stance given the company’s financial profile and valuation concerns.

Valuation and Relative Positioning

The stock currently trades at a price-to-book value of 0.5, suggesting a valuation discount relative to its peers’ historical averages. The company’s ROE of 2.2% aligns with this fair valuation assessment. Over the past year, while the stock price has declined by 30.63%, reported profits have increased by 13.8%, resulting in a PEG ratio of 1.4. This divergence between earnings growth and share price performance indicates market scepticism despite some improvement in profitability.

Hathway Cable & Datacom Ltd’s Mojo Score stands at 20.0, with a Mojo Grade of Strong Sell as of 7 Jan 2026, downgraded from Sell. The Market Cap Grade is rated 3, reflecting the company’s mid-tier market capitalisation within the Media & Entertainment sector.

Sector Context and Comparative Performance

The Media & Entertainment sector, particularly the DTH/Cable segment, has experienced a decline of 3.45% recently, but Hathway Cable & Datacom Ltd’s share price has fallen at a much steeper rate. This underperformance is evident across short, medium, and long-term periods when compared with the BSE500 and Sensex indices.

The company’s market cap grade of 3 places it in a moderate category, yet its stock has not attracted significant institutional interest, as reflected by the absence of domestic mutual fund holdings. This contrasts with other sector players who have maintained or improved their market positions and valuations.

Overall, Hathway Cable & Datacom Ltd’s stock performance and financial metrics illustrate a challenging environment for the company, with persistent declines in share price and profitability metrics over multiple years.

Summary of Key Financial Indicators

Operating profit growth (5 years CAGR): -35.31%

EBIT to Interest ratio (average): -2.51

Return on Equity (average): 2.84%

Debtors turnover ratio (half-year): 4.77 times

PBDIT (quarterly): Rs.77.41 crore

Operating profit to net sales (quarterly): 14.43%

Mojo Score: 20.0 (Strong Sell, downgraded from Sell on 7 Jan 2026)

Market Cap Grade: 3

Price-to-Book Value: 0.5

PEG Ratio: 1.4

Conclusion

Hathway Cable & Datacom Ltd’s stock reaching an all-time low of Rs.10.6 reflects a continuation of a prolonged downtrend marked by underwhelming financial performance and valuation pressures. The company’s returns have lagged significantly behind benchmark indices and sector peers across all measured timeframes. Key financial ratios indicate limited profitability and constrained debt servicing capacity. The absence of domestic mutual fund holdings further underscores the cautious market stance towards the stock. These factors collectively illustrate the severity of the current situation for Hathway Cable & Datacom Ltd within the Media & Entertainment sector.

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