GTPL Hathway (GTPL)
Asset PlayFairStock Score: 42/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 1/1
Key Financials
| Current Price | ₹52.89 |
| Market Cap | ₹594.82 Cr |
| P/E Ratio | 78.94 |
| ROCE | 5.9% |
| ROE | 2.24% |
| Dividend Yield | 3.78% |
| Profit Growth | -77.7% |
| Debt/Equity | 0.4 |
| Sales Growth | 12.4% |
| Free Cash Flow | ₹53,12,000 Cr |
| Promoter Holding | 75% |
| 52-Week Range | ₹50.57 — ₹118.95 |
| Sector | Entertainment |
| Book Value | ₹102.28 |
Strengths
- Trades at 0.82x book value with book value ₹83.21 vs price ₹68.
- 75% promoter holding ensures alignment and limits free-float.
- Low debt/equity of 0.40 provides balance-sheet stability.
- Dividend yield of 3.42% rewards shareholders while awaiting recovery.
- Piotroski F-Score of 7/9 indicates financial health is intact.
Concerns
- ROE of 2.24% and ROCE of 5.90% show poor returns on capital.
- Latest quarter net profit of ₹12 Cr on sales of ₹933 Cr implies very thin margins.
- PEG of 2.37 suggests valuation is not cheap relative to profit growth of 8.26%.
- Stock is down sharply from 52-week high of ₹120.38, reflecting negative sentiment.
AI Analysis
Let me examine GTPL Hathway with a cold eye. On first glance, the market cap is ₹657 Cr and the price is ₹68, while book value stands at ₹83.21. I am naturally drawn to a stock trading at 0.82 times book. But Graham taught me that a bargain must also be a decent business, or at least a source of earnings. Here the ROE is just 2.24%, and ROCE is 5.90%. That tells me the company is not compounding shareholder wealth impressively; it earns very little on the assets it employs. Debt/equity is 0.40, which is manageable, and promoter holding at 75% aligns owners with management. A Piotroski F-Score of 7/9 suggests the balance sheet is not deteriorating, and a 3.42% dividend yield offers some reward while waiting. Yet growth is pedestrian: sales up 5.11%, profits up 8.26%. A PEG of 2.37 says I am paying more than the growth justifies. The latest quarter shows sales of ₹933 Cr but net profit of only ₹12 Cr—razor-thin margins. This is not a franchise with pricing power; it is a low-margin distributor/operator whose moat, if any, comes from local infrastructure and a high promoter stake. The stock has fallen from ₹120.38 to ₹68, so the market is worried. As a value investor, I would call this a possible asset play: price below book, but returns on capital fail to excite. I want a margin of safety in both assets and earning power. Here the asset margin exists, but earning power is weak. I would not rush in; I need to see higher ROE or a clearer catalyst to unlock that book value.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer