Hathway Cable surges on heavy volumes, stock soars 125% in 2012

The stock currently trading at its lifetime high has seen its market price more than double from Rs 110 at the beginning of the year.

Hathway Cable and Datacom has surged 6.3% to Rs 250 on over five-fold jump in trading volumes. A combined 1.08 million shares have already changed hands on the counter in early noon deals against an average sub 200,000 shares that were traded daily in past two weeks on the BSE and NSE.

The company engaged in broadcasting and cable TV operating business is among the best performers during 2012 on digitization wave. The stock currently trading at its lifetime high has seen its stock price more than double from Rs 110 at the beginning of the year.

The information and broadcasting ministry has set October 31, deadline for digitisation of cable television in four metros - Delhi, Mumbai, Chennai and Kolkata.

 

“Hathway is the best placed multi-system operators (MSO) to capitalise on the huge digitisation opportunity. Due to the ongoing digitisation process, the company’s operating profit is likely to fluctuate on account of call centre expenses, ad expenses and local cable operators commissions,” analyst at Edelweiss Securities said in its research report dated October 3.

“Once the entire digitisation process is complete, average revenue per user (ARPUs) are expected to surge to Rs 225 for Hathway vis-à-vis current secondary ARPU of Rs160,” added report.