HDFC Securities has come out with a research report on Hathway Cable and Datacom IPO. The research firm has recommended subscribing to the IPO.
The initial public offering (IPO) of Hathway Cable and Datacom, a cable television services provider, has opened for subscription. The price band is at Rs 240-265 per share. The IPO of 277.5 lakh equity shares of Rs 10 each will close on February 11, 2010.
The report says, "Though digital cable will be a success and drive revenues and margins going ahead, competition from DTH players remains the key risk for Hathway. DTH was launched in India three years back and consolidated subscribers now stand at over 18 million. In the broadband segment too, large telecom companies (BSNL, Airtel, Rcom, Tata) have strong networks and these players have started penetrating this segment. They will continue to gain market share in the near future."
"However, at 20.3x FY10 annualised EV/EBITDA and with operating margins highest among peers, we believe the issue is reasonably priced and recommend subscribing to the IPO", according to HDFC Securities.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
