Hathway Cable (HATHWAY)
Asset PlayFairStock Score: 33/100 — RISKY
Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹10.6 |
| Market Cap | ₹1,876.31 Cr |
| P/E Ratio | 25.24 |
| ROCE | 3.03% |
| ROE | 1.45% |
| Dividend Yield | 0% |
| Profit Growth | -22.2% |
| Debt/Equity | 0 |
| Sales Growth | 6.5% |
| Free Cash Flow | ₹-2,92,72,750.08 Cr |
| Promoter Holding | 75% |
| 52-Week Range | ₹8.76 — ₹15.25 |
| Sector | Entertainment |
| Book Value | ₹23.65 |
Strengths
- Trades at a steep 57% discount to book value (P/B 0.43 vs BV ₹26.10)
- Zero debt (D/E 0.00) gives balance sheet stability
- Piotroski F-Score of 7/9 signals improving fundamentals
- Promoter holding at 75% aligns management with public shareholders
- Profit growth of 55.44% indicates recent momentum
Concerns
- ROE of 1.45% and ROCE of 3.03% are far too low – capital is not being productively deployed
- Free cash flow is negative despite reported profits, raising questions about earnings quality
- No dividend, so returns depend entirely on price appreciation
- Sales growth of only 4.97% suggests limited top-line expansion while P/E is 17.89
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer