Hathway Cable & Datacom Experiences Quality Grade Change Amidst Competitive Challenges

Hathway Cable & Datacom, a small-cap player in the Media & Entertainment sector, has recently undergone an evaluation revision. This adjustment reflects the company's performance metrics and market position relative to its peers.
Over the past five years, Hathway has experienced a sales growth rate of 3.54%, while its EBIT growth has faced a significant decline of 43.82%. The company's EBIT to interest ratio stands at 3.24, indicating a manageable interest burden. Additionally, Hathway's net debt is notably low, with a debt to EBITDA ratio that suggests a strong balance sheet. The tax ratio is recorded at 22.63%, and the company maintains a dividend payout ratio of zero, indicating a focus on reinvestment.

In comparison to its peer, Den Networks, Hathway's performance metrics show a similar quality assessment. However, Hathway's stock has underperformed against the broader market, as evidenced by its returns over various periods. For instance, the stock has declined by 32.97% over the past year, contrasting sharply with the Sensex's modest gain of 2.41%. This performance highlights the challenges faced by Hathway in a competitive landscape, emphasizing the need for strategic adjustments moving forward.