hathway cable & data com - business...
TRANSCRIPT
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Edelweiss Securities Limited
We recently interacted with Mr. G Subramaniam, CFO, Hathway
Cable & Datacom (Hathway). The company is confident of seeding
boxes within the October 31 deadline. It is well placed for
digitisation as 75% of its subscriber base lies in Phase 1 & 2 areas.
However, the full benefit of digitisation on subscription revenues in
Phase 1 will be apparent only from Q1FY14 (lag of two quarters).
With rapid digital subscriber additions, Hathway continues to
execute the best amongst all MSOs. Maintain ‘BUY’.
ARPUs to surge post digitisation
Hathway intends to seed ~2.2mn boxes (1.2mn done) in Phase 1 cities of Mumbai,
Delhi and Kolkata. Once the entire digitisation process is complete, ARPUs are
expected to surge to INR225 for Hathway vis-à-vis current secondary ARPU of INR160.
The company has chalked out a strategy for its broadband business and intends to
invest further in it post digitisation. As per management, apart from the issue of
branding where MSOs lose out to DTH players, cable technology is superior to DTH and
digital cable subscriber additions will outnumber DTH additions.
Phase 1 digitisation on track in 3 cities
Digitisation has been progressing at a rapid pace in Mumbai, followed by Kolkata and
Delhi, while Chennai remains a laggard. Currently, Hathway has sufficient inventory of
boxes (0.5mn). Recently, the subscription packs have been made public by the
company. The Ministry of Information & Broadcasting (MIB) has upped the ante in
terms of government-run publicity campaigns in electronic and print media.
Outlook and valuations: Execution remains key; maintain ‘BUY’
Hathway is the best placed MSO to capitalise on the huge digitisation opportunity. Due
to the ongoing digitisation process, the company’s EBITDA is likely to fluctuate on
account of call centre expenses, ad expenses and LCO commissions. Hence, we value
Hathway based on EV/sales multiple. Currently, the stock is trading at EV/sales of 3.3x
and 2.7x FY13E and FY14E, respectively. Maintain ‘BUY/Sector Outperformer’.
VISIT NOTE
HATHWAY CABLE & DATACOM Uninterrupted reception
EDELWEISS 4D RATINGS
Absolute Rating BUY
Rating Relative to Sector Outperformer
Risk Rating Relative to Sector Medium
Sector Relative to Market Equalweight
MARKET DATA (R: HAWY.BO, B: HATH IN)
CMP : INR 233
Target Price : INR 272
52-week range (INR) : 238 / 80
Share in issue (mn) : 142.9
M cap (INR bn/USD mn) : 33/ 633
Avg. Daily Vol.BSE/NSE(‘000) : 615.8
SHARE HOLDING PATTERN (%)
Current Q4FY12 Q3FY12
Promoters %
49.6 49.6 49.6
MF's, FI's & BK’s 19.4 19.4 14.2
FII's 24.3 24.3 24.3
others 6.7 6.7 11.9
* Promoters pledged shares
(% of share in issue)
: NIL
PRICE PERFORMANCE (%)
Stock Nifty
EW Media
Index
1 month 29.7 6.9 0.9
3 months 27.9 10.8 23.3
12 months 139.9 15.3 10.5
Abneesh Roy
+91 22 6620 3141
Alankar Garude
+91 22 6623 3301
India Equity Research| Media
October 3, 2012
Financials (consolidated)
Year to March FY11 FY12 FY13E FY14E
Revenues (INR mn) 8,827 10,121 12,097 14,390
Rev. growth (%) 20.4 14.7 19.5 19.0
EBITDA (INR mn) 1,501 1,676 2,189 2,686
Net profit (INR mn) (286) (458) (480) (302)
Share outstanding (mn) 143 143 143 143
Diluted EPS (INR) (2.2) (3.4) (3.4) (2.1)
EV/EBITDA (x) 24.0 22.6 18.0 14.7
EV/Sales (x) 4.1 3.7 3.3 2.7
ROAE (%) (2.8) (4.7) (4.9) (2.7)
Media
2 Edelweiss Securities Limited
Key meeting takeaways
Phase 1 & 2: Hathway has already seeded ~1.2mn boxes in Mumbai, Delhi and Kolkata, and
targets seeding of ~2.2mn boxes in these 3 metros. The company is specifically looking to
target Phase 1 & 2 because 75% of its ~8.9mn subscriber base lies in these areas. Phase 2
will be stretched, but Hathway is looking at options like extending vendor credit facility to
prevent dilution. If subscription revenue starts accruing on time, dilution may not be
necessary.
Upside in subscription revenues post Phase 1: Entire upside in subscription revenue due to
Phase 1 will be visible from Q1FY14.
ARPU: ARPUs are expected to stabilise at INR225 for Hathway compared to INR220-250
(like-to-like) currently for DTH players. Currently, secondary ARPU for Hathway is INR160.
Cable versus DTH: The only issue where cable loses out to DTH is that unlike the latter cable
operators do not have a significant brand.
Joint ads: Joint ads in major newspapers in metros cost Hathway just INR2.2mn.
Multi-TV homes: Hathway expects ~15% incremental multi-TV homes in Phase 1 cities.
Inventory: The company has 0.5mn boxes in inventory. Apart from these, 0.2mn boxes have
been ordered which can be used if competitors vacate some territories. If more than 0.5mn
boxes need to be added immediately, it can be done as contracts have been signed with
Cisco and NDS.
Subscription packs: In the Basic Pay Tier, Hathway expects 5-10% penetration. In mid-tier,
the company expects 70% penetration. And, in the high level tier, Hathway expects 25%
penetration. LCO also has incentive to push high level tier as he gets directly ~35% of the
higher-end package.
FTA channels: FTA channels will also pay to be in a particular package, which will be called
packaging charges.
Role of LCOs post-digitisation: LCOs will continue to own the last mile and hence it is
essential that they be kept satisfied in the current scheme of things. Competition from DTH
will keep a tab on LCOs. LCO will make ~INR70-80 per cable subscriber vis-à-vis INR120-130
he used to make in the analog scenario. LCOs will continue to collect payments. Subscribers
will also be given the option to use online and cheque drop options. LCOs can switch
allegiance, but other MSOs do not have extra boxes. Also, most MSOs do not have
broadband facility.
Fall in carriage fees: Since the number of channels will increase, the drop in per channel
carriage fees will be balanced by increase in overall carriage fees.
Subscriber acquisition cost (SAC): SAC of Hathway is INR900. SAC of DTH is INR2,300.
Broadband: Post-digitisation, Hathway will continue to invest in broadband. A small portion
of broadband revenue (10-15%) will be shared with LCO. 4G is not a competition to
Hathway because speed of wired technology will always be higher than wireless.
Hathway Cable & Datacom
3 Edelweiss Securities Limited
Acquisition opportunities: The company is currently focused on seeding boxes and is not
actively looking at acquisition opportunities. However, if any acquisition opportunity arises
post Phase 2, the company will consider it.
Acquisition price per subscriber: As per Hathway, ~15-20x ARPU is a good price to pay per
subscriber.
D/E ratio: The D/E ratio lies at a fairly comfortable 0.4 at June end.
Free cash flow: Hathway aims to be free cash flow positive by FY15.
Depreciation policy of boxes: Hathway depreciates set top boxes over 8 years. Activation
fee of ~INR500 is charged immediately. Earlier, it used to amortize over 5 years, which has
been extended to 8 years, in line with cable industry practice.
Table 1: Depreciation policy of listed MSOs/DTH players
Source: Edelweiss research
Subsidiary structure: 48 subsidiaries fall directly under Hathway. Some of these in turn have
further subsidiaries. Hathway will look at simplifying its subsidiaries’ structure over the next
1-2 years. Going forward, it does not envisage providing corporate guarantees to its JVs.
Call centre: Hathway’s call centre will have lesser seats than DTH providers. This is because
the company has the LCO who is a point of contact with the customer.
Number of channels: As of now, Hathway offers up to 250 channels in SD format and up to
20 channels in HD channels.
Providence: Providence Equity Advisors, which has acquired ~9.9% stake post Star India’s
stake sale in Hathway, typically has 5-6 years investment horizon and specialises in
consolidation of cable businesses.
Entertainment tax: Hathway expects entertainment tax in Mumbai to dip in the future from
INR45 currently.
Competition: As of now, there has not been irrational competition. However, as per
Hathway, 1-2 MSOs can turn more aggressive.
Consolidation: In a few years, smaller MSOs like Ortel (Orissa), Manthan (Kolkata), Seven
Star (Mumbai) and Atria (Bengaluru) will consolidate. India can support a maximum of 15
MSOs. This can happen in 3-4 years. In US, there are 10-12 MSOs.
FDI hike to 74%: There is not much room for foreign direct investment in Hathway as
promoter holding is very high.
Company
Set-top box activation
revenue recognition
Depreciation policy of
set top boxes
Dish TV 5 years 5 years
Hathway In the 1st year 8 years
Den Networks In the 1st year 8 years
WWIL In the 1st year 5 years
Media
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HD recorder: Hathway’s HD recorder is likely to be launched by FY13 end.
Delhi: Due to distributor model in Delhi, extra 2-3% of ARPU has to be shared with
distributors.
Digitisation: On the right track
The latest review of digitisation by the Ministry of Information & Broadcasting (MIB)
suggests that ~73% digitisation has been achieved in four metros. The data shows a healthy
addition of ~1.7mn boxes during the past three months in metros. MIB has upped the ante
in terms of government-run publicity campaigns in electronic and print media. Also, in our
view, joint ads issued by major MSOs and individual ads by DTH players, apart from the
firmness of MIB in meeting the deadline, augur well for the progress of digitisation.
Without relying on industry estimates, this time around MIB has relied on 2011 Census data
with respect to total households, TV penetration and households having TV sets. Because of
this revised calculation methodology, the potential subscriber base in Phase 1 stands at
~6.8mn vis-à-vis ~12.5mn. Following are the key takeaways from the latest MIB review:
• As per 2011 census, there are ~10.4mn households in four metros.
• 80% average TV penetration assumed, which means ~8.3mn TV households.
• ~8.3mn TV households: ~2.6mn are DTH and ~5.7mn cable TV households.
• By making a 20% incremental provision for multi-TV cable households, total cable TV
subscribers in metros stand at ~6.8mn.
• Out of these ~6.8mn cable TV subscribers in metros, ~5mn boxes have already been
installed, a penetration of 73%.
• Out of its ~1.9mn potential subscriber base, Mumbai has achieved 95% penetration and
seeded ~1.8mn boxes vis-à-vis ~1.2mn boxes at May end.
• Currently, Kolkata has seeded ~1.3mn boxes vis-à-vis ~0.6mn at May end. The
penetration level in Kolkata now stands at ~70%.
• Delhi has seeded ~1.3mn boxes, up from ~0.8mn boxes at May end. The penetration
level in Delhi is ~60%.
• Digitisation has not moved forward in Chennai at all with 0.25mn digital subscribers.
In another significant development for digitisation, four large MSOs (Hathway, Den
Networks, WWIL and Digicable) have announced their consumer packages. We expect the
announcement of packages to bring further clarity to subscribers about subscription charges,
and speed up the digitisation process. Lack of consumer packs was a major product gap in
comparison to DTH. In our view, signing of the inter-connect agreements and
announcement of consumer packages signal the crossing of two significant hurdles in the
completion of Phase 1 of digitisation before the October 31, 2012 deadline. Amongst MSOs,
Hathway will be offering three packs of 135, 198 and 242 channels for INR160, INR220 and
INR275, respectively. Similarly, Den Networks has announced three packs offering 112, 219
and 235 channels for INR180, INR225 and INR270, respectively. WWIL will charge INR100 for
the basic package of 118 channels and INR150 for the other three packages, each of which
are specific to Mumbai, Delhi and Kolkata. Apart from these packages, consumers will also
be given the option of choosing channels from an a la carte list. All the above packages are
exclusive of entertainment and service taxes. In comparison, Dish TV offers 205 channels for
Hathway Cable & Datacom
5 Edelweiss Securities Limited
INR200 (as per our analysis INR178 ex-service tax), 235 channels for INR255, 245 channels
for INR305, 270 channels for INR380 and 280 channels for INR400. All of Dish TV’s pack
prices are inclusive of service tax.
Table 2: Consumer packages of different MSOs and Dish TV
Source: Ministry of Information & Broadcasting, Edelweiss research
Also, Ms. Ambika Soni, I&B Minister, had recently met the Delhi Chief Minister, where the
latter assured that Delhi will meet the deadline and the state government will take steps in
this direction (Delhi has been a laggard compared to Mumbai). Ms. Soni has again reiterated
that the Phase 1 deadline will not be extended. According to Ms. Soni, ~90% TV households
(including DTH homes) in Mumbai have installed set top boxes, followed by Kolkata with
~77% and Delhi and Chennai both with ~70% TV households each having set top boxes. Even
though Delhi remains a laggard, the Delhi government has assured that digitisation will be
completed in the city by the Phase 1 deadline, and it will launch a campaign soon to educate
subscribers about the approaching deadline.
MSO Package
Number of
channels
Rate exclusive of
taxes (INR)
Rate per
channel (INR)
Hathway Basic 135 160 1.2
Medium 198 220 1.1
Premium 242 275 1.1
Den Networks Pack 1 112 180 1.6
Pack 2 219 225 1.0
Pack 3 235 270 1.1
WWIL Janta 118 100 0.8
Popular 1 (Kolkata) 151 150 1.0
Popular 2 (Mumbai) 153 150 1.0
Popular 3 (Delhi) 142 150 1.1
Digicable Basic 145 180 1.2
Gold 151 200 1.3
Premium 165 250 1.5
DTH operator Package
Number of
channels
Rate inclusive of
service tax (INR)
Rate per
channel (INR)
Dish TV Super Family 205 200 1.0
Super Gold 235 255 1.1
Super World 245 305 1.2
Super Platinum 270 380 1.4
Paradise 280 400 1.4
Media
6 Edelweiss Securities Limited
Outlook and valuations: Execution remains key; maintain ‘BUY’
Hathway is the best placed cable company to capitalise on the huge digitisation opportunity.
Due to the ongoing digitisation process, EBITDA is likely to fluctuate due to call centre
expenses, ad expenses and LCO commissions. Hence, we value Hathway based on EV/sales
multiple. Currently, the stock is trading at EV/sales of 3.3x and 2.7x FY13E and FY14E,
respectively. Assigning Hathway a FY14E EV/sales target of 3.0x, we derive a target price of
INR272. We maintain ‘BUY’ recommendation and rate it ‘Sector Outperformer’.
Chart 1: Quarter-wise digital subscriber base—On the rise
Source: Company, Edelweiss research
Fig. 1: Hathway’s SD and HD set top boxes
Source: Company website
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Hathway Cable & Datacom
7 Edelweiss Securities Limited
Fig. 2: Joint ads by leading MSOs in newspapers
Source: Company
Media
8 Edelweiss Securities Limited
Company Description
Hathway is one the largest MSOs as well as one of the leading cable broadband service
providers in India. Having entered the cable and entertainment business in 1995, the
company offers three broad services—analog cable television, digital cable television and
broadband internet. Its key promoter is the Rajan Raheja Group with a ~49.6% stake. While
Hathway currently provides analog TV services in 140 cities, it is the largest digital cable TV
provider in India. It is also the first cable TV service provider to offer broadband services in
19 cities. The company has bagged the ‘Best Cable TV Operator of the Year’ award by the
Indian Television Awards eight times. Hathway has launched a channel Hathway Music
(music channel).
Investment Theme
The compulsory digitisation mandate will lead to digitisation of cable TV services across
India by CY14 end. Converting its existing analog subscriber base on the digital platform will
provide Hathway a huge opportunity to increase subscription revenue due to lower under-
declaration and higher ARPU. Hathway’s digitisation progress is on track and the company
will be looking to build on to its broadband subscriber base as well.
Key Risks
• DTH players can leverage on first mover, stronger brand advantage
• Fund raising may be required in subsequent phases
• Loss of subscribers if LCOs shift loyalties
• Intense competition may limit ARPU growth
9 Edelweiss Securities Limited
Hathway Cable & Datacom
Financial Statements
Key Assumptions
Year to March FY10 FY11 FY12 FY13E FY14E
Macro - GDP(Y-o-Y %) 8.4 8.4 6.5 6.4 7.0
Inflation (Avg) 3.6 9.9 8.8 7.0 6.0
Repo rate (exit rate) 5.0 6.8 8.5 7.3 6.8
USD/INR (Avg) 47.4 45.6 47.9 53.5 50.0
Company - Paying subscribers (mn) 1.6 1.7 1.9 3.0 4.0
Primary subscribers' ARPU (INR) 183 176 177 186 195
Broadband subscribers (mn) 0.3 0.4 0.4 0.5 0.7
Pay channel costs (% of rev.) 39.9 40.6 40.8 40.7 41.0
Income statement (INR mn)
Year to March FY10 FY11 FY12 FY13E FY14E
Net revenue 7,332 8,827 10,121 12,097 14,390
Pay channel cost 2,924 3,622 4,295 5,133 6,116
Employee costs 748 898 926 1,270 1,511
Operating expenses 2,406 2,806 3,224 3,505 4,077
Total operating expenses 6,077 7,326 8,445 9,908 11,703
EBITDA 1,254 1,501 1,676 2,189 2,686
Depreciation and amortisation 1,111 1,249 1,409 1,804 2,008
EBIT 143 252 268 385 679
Other income 68 255 165 169 173
Foreign exchange gain/(loss) 6 - - - -
Interest expenses 556 452 520 602 686
Exceptionals 167 167 148 148 148
Profit before tax (506) (112) (235) (195) 18
Provision for tax 156 127 153 183 218
Net profit (662) (239) (388) (378) (200)
Extraordinary income/ (loss) (47) 23 32 - -
Minority interest 92 71 102 102 102
Profit after minority interest (801) (286) (458) (480) (302)
Shares outstanding (mn) 120 143 143 143 143
Diluted EPS (INR) (6.3) (2.2) (3.4) (3.4) (2.1)
Common size metrics - as % of net revenues
Year to March FY10 FY11 FY12 FY13E FY14E
Employee expenses 10.2 10.2 9.1 10.5 10.5
Direct Cost 72.7 72.8 74.3 71.4 70.8
EBITDA margins 17.1 17.0 16.6 18.1 18.7
Net profit margins (9.0) (2.7) (3.8) (3.1) (1.4)
Growth ratios (%)
Year to March FY10 FY11 FY12 FY13E FY14E
Rev. growth (%) 10.6 20.4 14.7 19.5 19.0
EBITDA 21.3 19.7 11.7 30.6 22.7
10 Edelweiss Securities Limited
Media
Balance sheet (INR mn)
As on 31st March FY10 FY11 FY12 FY13E FY14E
Equity capital 1,429 1,429 1,429 1,429 1,429
Employee stock option O/S 19 - - - -
Reserves & surplus 7,378 7,090 6,598 6,118 5,816
Shareholders funds 8,826 8,518 8,028 7,547 7,245
Minority interest (BS) 1,280 1,484 1,802 1,904 2,007
Secured loans 4,482 3,197 3,727 4,800 5,500
Unsecured loans 125 337 213 213 213
Borrowings 4,607 3,533 3,940 5,013 5,713
Deferred tax liability 82 90 103 103 103
Sources of funds 14,796 13,625 13,873 14,568 15,068
Gross block 13,487 15,350 17,623 19,823 21,823
Depreciation 3,991 5,046 6,463 8,267 10,274
Net block 9,497 10,304 11,160 11,556 11,548
Capital work in progress 274 512 1,005 1,000 1,200
Investments 4,183 1,861 158 300 500
Inventories 42 47 55 42 75
Sundry debtors 1,955 2,529 2,492 3,540 3,635
Cash and equivalents 1,004 390 976 408 957
Loans and advances 1,484 1,843 1,923 2,268 2,697
Total current assets 4,485 4,809 5,445 6,257 7,365
Sundry creditors and others 2,112 1,225 1,583 1,773 2,269
Others current liabilities 1,412 2,501 2,203 2,661 3,166
Provisions 119 136 110 110 110
Total current liabilities & provisions 3,643 3,862 3,896 4,545 5,545
Net current assets 842 947 1,550 1,712 1,819
Uses of funds 14,796 13,625 13,873 14,568 15,068
Book value per share (INR) 73.7 59.6 56.2 52.8 50.7
Free cash flow (INR mn)
Year to March FY10 FY11 FY12 FY13E FY14E
Net profit (801) (286) (458) (480) (302)
Depreciation 1,111 1,249 1,409 1,804 2,008
Deferred tax 30 10 14 - -
Others 1,019 597 1,119 534 615
Gross cash flow 1,359 1,571 2,084 1,858 2,320
Less: Changes in WC (9) 500 448 730 (442)
Operating cash flow 1,368 1,071 1,636 1,128 2,762
Less: Capex 1,232 2,101 2,766 2,195 2,200
Free cash flow 136 (1,030) (1,129) (1,067) 562
Cash flow metrics
Year to March FY10 FY11 FY12 FY13E FY14E
Operating cash flow 1,368 1,071 1,636 1,128 2,762
Investing cash flow (5,644) 777 (1,515) (2,167) (2,227)
Financing cash flow 4,828 (1,713) (147) 471 14
Net cash flow 552 135 (26) (568) 549
Capex (1,232) (2,101) (2,766) (2,195) (2,200)
11 Edelweiss Securities Limited
Hathway Cable & Datacom
Peer comparision valuation
CMP M. Cap
Company (INR) (INR bn) FY13E FY14E FY13E FY14E FY13E FY14E
Dish TV 82 87 NM NM 14.8 10.9 4.1 3.2
Hathway Cable & Datacom 233 33 NM NM 18.0 14.7 3.3 2.7
Jagran Prakashan 92 29 10.6 12.2 8.0 6.7 1.8 1.5
PVR 216 6 10.9 10.9 6.7 6.4 1.0 0.9
Sun TV Network 359 141 19.9 17.4 8.6 7.4 6.5 5.6
Zee Entertainment 197 190 28.4 24.1 19.9 16.1 5.2 4.6
Source: Company, Edelweiss research
P/E (x) EV/EBITDA (x) EV/sales (x)
Profitability & efficiency ratios
Year to March FY10 FY11 FY12 FY13E FY14E
ROAE (%) (11.6) (2.8) (4.7) (4.9) (2.7)
ROACE (%) 1.4 2.3 2.1 2.8 4.7
Inventory day 3 3 2 2 2
Debtors days 95 93 91 91 91
Payable days 152 95 68 71 72
Current ratio 1.2 1.2 1.4 1.4 1.3
Debt/EBITDA 3.7 2.4 2.4 2.3 2.1
Fixed asset turnover (x) 0.8 0.9 0.9 1.1 1.2
Debt/Equity 0.5 0.4 0.5 0.7 0.8
Adjusted debt/equity 0.6 0.5 0.7 0.7 0.8
Interest coverage 0.3 0.6 0.5 0.6 1.0
Operating ratios
Year to March FY10 FY11 FY12 FY13E FY14E
Total asset turnover 0.6 0.6 0.7 0.9 1.0
Fixed asset turnover 0.8 0.9 0.9 1.1 1.2
Equity turnover 1.3 1.0 1.2 1.6 1.9
Valuation parameters
Year to March FY10 FY11 FY12 FY13E FY14E
Diluted EPS (INR) (6.3) (2.2) (3.4) (3.4) (2.1)
CEPS (INR) 3.2 6.7 6.5 9.3 11.9
Price/BV (x) 3.2 3.9 4.1 4.4 4.6
EV/Sales (x) 3.2 3.4 3.2 2.8 2.3
EV/EBITDA (x) 22.8 24.0 22.6 18.0 14.7
FCFPS (INR) 1.1 (7.2) (7.9) (7.5) 3.9
12 Edelweiss Securities Limited
Company Absolute
reco
Relative
reco
Relative
risk
Company Absolute
reco
Relative
reco
Relative
Risk
Dish TV India BUY SP M Hathway Cable & Datacom BUY SO M
Jagran Prakashan BUY SP M PVR BUY SP M
Sun TV Network UNDER REVIEW UNDER REVIEW M Zee Entertainment Enterprise BUY SO M
RATING & INTERPRETATION
ABSOLUTE RATING
Ratings Expected absolute returns over 12 months
Buy More than 15%
Hold Between 15% and - 5%
Reduce Less than -5%
RELATIVE RETURNS RATING
Ratings Criteria
Sector Outperformer (SO) Stock return > 1.25 x Sector return
Sector Performer (SP) Stock return > 0.75 x Sector return
Stock return < 1.25 x Sector return
Sector Underperformer (SU) Stock return < 0.75 x Sector return
Sector return is market cap weighted average return for the coverage universe
within the sector
RELATIVE RISK RATING
Ratings Criteria
Low (L) Bottom 1/3rd percentile in the sector
Medium (M) Middle 1/3rd percentile in the sector
High (H) Top 1/3rd percentile in the sector
Risk ratings are based on Edelweiss risk model
SECTOR RATING
Ratings Criteria
Overweight (OW) Sector return > 1.25 x Nifty return
Equalweight (EW) Sector return > 0.75 x Nifty return
Sector return < 1.25 x Nifty return
Underweight (UW) Sector return < 0.75 x Nifty return
13 Edelweiss Securities Limited
Hathway Cable & Datacom
Edelweiss Securities Limited, Edelweiss House, off C.S.T. Road, Kalina, Mumbai – 400 098.
Board: (91-22) 4009 4400, Email: [email protected]
Vikas Khemani Head Institutional Equities [email protected] +91 22 2286 4206
Nischal Maheshwari Co-Head Institutional Equities & Head Research [email protected] +91 22 4063 5476
Nirav Sheth Head Sales [email protected] +91 22 4040 7499
Coverage group(s) of stocks by primary analyst(s): Media
Dish TV India, Hathway Cable & Datacom, Jagran Prakashan, PVR, Sun TV Network, Zee Entertainment Enterprise
Distribution of Ratings / Market Cap
Edelweiss Research Coverage Universe
Rating Distribution* 113 53 19 186
* 1 stocks under review
Market Cap (INR) 114 58 14
Date Company Title Price (INR) Recos
Recent Research
01-Oct-12 Media MSO packs: Another cog in
digitisation wheel;
EdelFlash
24-Sep-12 Media HITS: Will DTH/MSOs be
impacted?; Sector Update
21-Sep-12 ZEE Bangla movie channel to firm
up regional efforts;
EdelFlash
Buy 185
> 50bn Between 10bn and 50 bn < 10bn
Buy Hold Reduce Total
Rating Interpretation
Buy appreciate more than 15% over a 12-month period
Hold appreciate up to 15% over a 12-month period
Reduce depreciate more than 5% over a 12-month period
Rating Expected to
14 Edelweiss Securities Limited
Media
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