Hathway Cable corrects on profit booking

Hathway Cable & Datacom fell 3.64% to Rs 43.70 at 12:29 IST on BSE on profit booking after the stock rose 24.25% in the preceding 11 trading sessions to Rs 45.35 yesterday, 15 October 2015, from a recent low of Rs 36.50 on 29 September 2015.

Meanwhile, the BSE Sensex was down 67.87 points, or 0.25%, to 26,942.27.

On BSE, so far 40,000 shares were traded in the counter, compared with an average volume of 1.01 lakh shares in the past one quarter.

The stock hit a high of Rs 45.80 and a low of Rs 43.40 so far during the day. The stock hit a record high of Rs 77.12 on 19 November 2014. The stock hit a 52-week low of Rs 34.75 on 29 September 2015.

The stock had outperformed the market over the past one month till 15 October 2015, rising 15.54% compared with 5.07% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 6.69% as against Sensex's 4.21% decline.

The mid-cap company has an equity capital of Rs 166.10 crore. Face value per share is Rs 2.

Hathway Cable & Datacom announced during market hours yesterday, 15 October 2015, that its board approved demerger, transfer and vest its entire broadband business into its wholly-owned subsidiary, Hathway Broadband. Shares of Hathway Cable surged 10.61% to Rs 45.35 yesterday, 15 October 2015.

The company said that the carving out of the broadband business is aimed at accelerating value creation for the company's shareholders. The separation will allow the company to aggressively focus on the significant growth potential for high speed data and related services in India, Hathway Cable & Datacom said. Hathway Broadband intends to take the lead in driving wireline broadband penetration in India and become a key player in Prime Minister Narendra Modi's Digital India initiative, the company said.

Hathway Cable & Datacom reported a net profit of Rs 43.91 crore in Q1 June 2015, as compared with net loss of Rs 0.92 crore in Q1 June 2014. Net sales rose 5.4% to Rs 263.17 crore in Q1 June 2015 over Q1 June 2014.

Hathway Cable & Datacom is one of the largest multi system operator (MSO) and cable broadband service providers in India.

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