Mehabe score: 2 G Factor: 4 Piotski Score: 7 The stock has a rating 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 4 and Piotski score of 7.
Description
Hathway Cable & Datacom is engaged in distribution of internet services through cable and has strategic stake in entities engaged in Cable Television business.(Source : 202003-01 Annual Report Page No:103)Site:HATHWAYMain Symbol:HATHWAY
Stock trades at 26.2, below its 50dma 26.39 and below its 200dma 27.72. The stock remains bearish on technicals
The 52 week high is at 57.45 and the 52week low is at 20.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 1.16 times its book value
– has delivered good profit growth of 25.84% CAGR over last 5 years
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 8.78% over past five years.
-Tax rate seems low
– has a low return on equity of 5.40% for last 3 years.
-Earnings include an other income of Rs.212.13 Cr.
Competition
– The industry trades at a mean P/E of 28.0x. Saregama India trades at the industry’s max P/E of 50.53x. HATHWAY trades at a P/E of 18.0x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. HATHWAY has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is -1.6%. The max 1- month return was given by Saregama India: a return of 21.23 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 441.0 cr compared to Rs 420.0 cr for period ended Jun 2020, a rise of 5.0%
Operating Profits reported at Rs 110.0 cr for period ended Jun 2021 vis-vis 118.0 for period ended Jun 2020 .
Operating Margins contracted -315.2 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.28 compared to Rs 0.41 for previous quarter ended Mar 2021 and Rs 0.37 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1754.0 cr for period ended TTM vis-vis sales of Rs 1732.0 cr for the period ended Mar 2021, a growth of 1.3%. The 3 year sales cagr stood at 4.0%.
Net Profit reported at Rs 236.0 cr for period ended TTM vis-vis sales of Rs 253.0 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 467.0 cr for period ended Mar 2021 vis-vis Rs 432.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 7.0% compared to 5.0% over the last 3 Years. – The stock has given a return of -50% on a 1 Year basis vis-vis a return of 15% over the last 3 Years. – The compounded sales growth on a TTM bassis is -4% vis-vis a compounded sales growth of 4% over the last 3 Years. – The compounded profit growth on a TTM basis is 284% vis-vis a compounded profit growth of 68% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has risen for the period ended Jun 2021. The Jun 2021 fii holding stood at 5.84% vis-vis 3.28% for Mar 2021 – Public shareholding has risen for the period ended Jun 2021. The Jun 2021 public holding stood at 12.2% vis-vis 4.5% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 1.16 times its book value
– has delivered good profit growth of 25.84% CAGR over last 5 years – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 8.78% over past five years.
-Tax rate seems low
– has a low return on equity of 5.40% for last 3 years.
-Earnings include an other income of Rs.212.13 Cr.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 26.39 and is trading at 26.2. Shows a near term lack of buying interest.
