GTPL Hathway Ltd. (GTPL) was initially incorporated by Aniruddhasinhji Jadeja
and Kanaksinh Rana, through the consolidation of cable service businesses in
Ahmedabad and Vadodara. In October 2007, Hathway acquired a 50% share of
business. GTPL is a leading regional Multi System Operator (MSO) in India,
offering cable television and broadband services with a market share of 67% of
cable television subscribers in Gujarat and number 2 MSO in Kolkata and
Howrah in West Bengal with a market share of 24% of cable television
subscribers. As of January 31, 2017, the company’s digital cable television
services reached 189 towns across India, including towns in Gujarat, West
Bengal, Maharashtra, Bihar, Assam, Jharkhand, Madhya Pradesh, Telangana,
Rajasthan and Andhra Pradesh.

Outlook and Valuation: In terms of valuation, GTPL’s P/BV multiple annualised
9MFY2017 at 3.1x, as compared to peers i.e. Den Networks 1.8x, Hathway
Cable & Datacom 0.7x, Ortel Comm. 1.4x, Siti Networks 4.8x. The cable industry
is already undergoing a period of weak performance and with disruptive pricing
of new entrants, there is a high probability that the performance may weaken
further. Hence, we recommend NEUTRAL rating on the issue.

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