Hathway Cable (HATHWAY)

FairStock Score: 33/100 — RISKY

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let me first admit, a stock trading at ₹11.13 against a book value of ₹26.10 catches my eye. That is a 57% discount to stated equity, with zero debt on the balance sheet. But Graham would remind me that a discount to book is only a source of comfort if management can turn those assets into earnings. Hathway's ROE of 1.45% and ROCE of 3.03% show a business that is capital-intensive and under-earning. The P/E of 17.89 means I am paying a premium for those weak earnings, so my margin of safety rests heavily on the asset base. The latest quarter shows sales of ₹537 Cr and net profit of ₹22 Cr; full-year profit grew 55.44%, but sales only grew 4.97% – that suggests a low base and cost discipline, not a booming franchise. Negative free cash flow is a red flag; reported profits are not converting into cash. The Piotroski F-Score of 7 is encouraging, and zero debt is a comfort. Promoter holding of 75% means their wealth is tied to mine, which I like. But there is no dividend, and the business faces structural pressure in broadcasting. This feels like a cigar-butt asset play: cheap on paper, but the business must prove it can create value. I would keep it small and watch for improvements in ROE and free cash flow before adding.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer