Buy GTPL Hathway, target price Rs 150: ICICI Direct

ICICI Direct has given a buy rating to GTPL Hathway with a target price of Rs 150. The share price moved up by 0.48 per cent from its previous close of Rs 126.20. The stock’s last traded price is Rs 126.80.

GTPL Hathway Ltd., incorporated in the year 2006, is a Small Cap company (having a market cap of Rs 1412.54 Crore) operating in Media & Entertainment sector.



Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 575.64 Crore, up 16.18 % from last quarter Sales of Rs 495.46 Crore and down 5.48 % from last year same quarter Sales of Rs 608.99 Crore Company reported net profit after tax of Rs 50.34 Crore in latest quarter.

Investment Rationale
GTPL’s operating performance continues to remain strong, especially in broadband segment, which reported solid traction. The brokerage remains constructive on the company given the superior financial metric vis-à-vis peer amid leadership in key markets. The company had indicated to be a net debt free company by end of FY21E and expansion in newer markets with stronghold in Gujarat provides growth opportunities. It maintains BUY rating and value it at Rs 150/share, implying target multiple of 9x FY22E core earnings.