Mehabe score: 5 G Factor: 3 Piotski Score: 5 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 5.
Description
Hathway Bhawani Cabletel & Datacom is engaged in the business of Cable TV business.Site:509073Main Symbol:HATHWAYB
Stock trades at 20.6, above its 50dma 19.9. It also trades above its 200dma 18.93. The stock remains bullish on techicals
The 52 week high is at 37.80 and the 52week low is at 14.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Stock is trading at 20.65 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -24.05% over past five years.
Competition
– The industry trades at a mean P/E of 32.2x. Saregama India trades at the industry’s max P/E of 52.71x. 509073 trades at a P/E of 18.0x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 8.0. 509073 has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is -0.4%. The max 1- month return was given by Saregama India: a return of 28.43 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1.05 cr compared to Rs 1.17 cr for period ended Jun 2020, a fall of 10.3%
Operating Profits reported at Rs 0.28 cr for period ended Jun 2021 vis-vis 0.5 for period ended Jun 2020 .
Operating Margins contracted -1606.8 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.2 compared to Rs 0.22 for previous quarter ended Mar 2021 and Rs 0.37 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4.24 cr for period ended TTM vis-vis sales of Rs 4.36 cr for the period ended Mar 2021, a fall of 2.8%. The 3 year sales cagr stood at -3.4%.
Operating margins shrank to 31.13% for period ended TTM vis-vis 36.01% for period ended Mar 2021, contraction of 488.0 bps.
Net Profit reported at Rs 0.93 cr for period ended TTM vis-vis sales of Rs 1.07 cr for the period ended Mar 2021, falling 15.1%.
Company recorded a healthy Net Profit CAGR of 259.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1.44 cr for period ended Mar 2021 vis-vis Rs 0.37 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 389.0% compared to 0% over the last 3 Years. – The stock has given a return of -45% on a 1 Year basis vis-vis a return of 103% over the last 3 Years. – The compounded sales growth on a TTM bassis is -13% vis-vis a compounded sales growth of -4% over the last 3 Years. – The compounded profit growth on a TTM basis is -72% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 34.7% vis-vis 34.7% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free. – Stock is trading at 20.65 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -24.05% over past five years.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 19.9 and is trading at 20.6 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
