Hathway Cable & Datacom jumped 6.37% to Rs 243 at 13:24 IST on BSE after a foreign brokerage started coverage on the stock with a 'buy' rating and a target price of Rs 302.
Meanwhile, the BSE Sensex was up 201.47 points, or 0.90%, to 22,478.70.
On BSE, so far 22,000 shares were traded in the counter, compared with an average volume of 29,330 shares in the past one quarter.
The stock hit a high of Rs 246.40 and a low of Rs 230 so far during the day. The stock hit a 52-week high of Rs 301.70 on 16 May 2013. The stock hit a 52-week low of Rs 221 on 16 April 2014.
The stock had underperformed the market over the past one month till 15 April 2014, falling 6.76% compared with the Sensex's 3.10% rise. The scrip had also underperformed the market in past one quarter, falling 11.86% as against Sensex's 5.62% rise.
The mid-cap digital cable provider has an equity capital of Rs 152 crore. Face value per share is Rs 10.
The brokerage said in its report that Hathway Cable & Datacom will benefit from increased digitisation, as well as higher rising broadband penetration and higher internet average revenue per user (ARPU).
Hathway Cable & Datacom reported net loss of Rs 36.86 crore in Q3 December 2013 as against net loss of Rs 7.42 crore in Q3 December 2012. Net sales rose 53.02% to Rs 234.08 crore in Q3 December 2013 over Q3 December 2012.
Hathway Cable & Datacom is one of the largest multi system operator (MSO) and cable broadband service providers in India. The company's cable operations straddle across key Indian geographies and offers cable television services across 140 cities and towns and high-speed cable broadband services across 21 cities. The company has established 20 digital head-ends in the country. It is currently India's largest cable broadband services provider, with approximately 1.4 million two-way broadband enabled homes. Its subscriber base constitutes approximately 52% of the total cable broadband market in India.
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