At a Glance
GTPL is India’s largest MSO and broadband player in Gujarat, but also a case study in margin erosion and PE delusion. While subscriber base is stable, profits have unplugged, dropping 53% YoY. Yet, the stock trades at 32x PE. Because… cable is the new gold?
1. 🧲 Introduction with Hook
GTPL Hathway is basically that guy who throws a LAN cable into rural India and calls it digital revolution. Once a cash-generating machine, now it’s the only “tech stock” where EBITDA margins shrink every quarter without fail.
And yet, investors clap because… 3.45% dividend yield? Bro, even FD gives more security.
2. 📡 WTF Do They Even Do?
Two Core Businesses:
- 🎞️ Digital Cable TV (Main bread):
- 9.6 million active STBs
- 8.9 million paying subscribers
- Presence in Gujarat, West Bengal, and 15+ states
- Proprietary content via “GTPL Buzz” & “GTPL Genie”
- 📶 Broadband (High-speed dreams, low-speed revenue):
- Largely Gujarat focused
- Bundled with OTT plans (Jio-style pitch, Hathway-style infra)
Despite OTT eating its lunch, GTPL keeps pitching itself as “future ready” — with a platform that feels like 2013.
3. 💰 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹2,664 Cr | ₹3,212 Cr | ₹3,477 Cr |
| Net Profit | ₹125 Cr | ₹112 Cr | ₹49 Cr |
| OPM % | 18% | 15% | 12% |
| ROE | 15% | 12% | 4% |
🧨 Revenue up, profit down, margins crushed. Classic case of volume without value.
4. 💸 Valuation – Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| P/E (TTM) | 32.3x |
| P/B | 1.12x |
| Dividend Yield | 3.45% |
| Market Cap | ₹1,307 Cr |
| FV Range (EduInvesting) | ₹72–₹88 |
🧮 FV Logic:
Let’s be honest. This business is declining in ARPU and facing OTT pressure. Apply 15x–18x to stable EPS of ₹4–₹5 = ₹72–₹88 FV range.
At ₹116? Way above the cable ceiling.
5. 🍿 What’s Cooking – News, Triggers, Drama
- 📢 Q1FY26 Results:
- Revenue ₹909 Cr (+7%)
- PAT ₹10.5 Cr (↓~50%)
- Margins still falling (11.8% OPM)
- 📡 OTT Integration: GTPL Buzz + Genie launched
- 💸 Rs. 97 Cr demand notice from DoT (spectrum fee)
Basically, company is trying to act modern while still charging people for watching Sasural Simar Ka.
6. 💥 Balance Sheet – How Much Debt, How Many Dreams?
| Item | FY25 |
|---|---|
| Equity Capital | ₹112 Cr |
| Reserves | ₹1,051 Cr |
| Borrowings | ₹313 Cr |
| Total Assets | ₹3,268 Cr |
- ⚖️ D/E Ratio: ~0.3x – healthy
- But Capex of ₹108 Cr in CWIP and ₹2,068 Cr in assets is massive for this low-margin game
- No impairment yet, but potential risks if OTT kills linear TV faster
7. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY25 | ₹452 Cr | ₹(380) Cr | ₹(111) Cr | ₹(39) Cr |
- 💰 Still generating cash — but not enough to cover capex and debt
- 📉 Net outflow of ₹39 Cr in FY25
- At this point, only positive thing here is that it hasn’t become another Zee or Dish TV (yet)
8. 📉 Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| OPM (Q1 FY26) | 11.82% |
| ROCE | 6% |
| ROE | 4.13% |
| Debtor Days | 62 |
| CCC | 62 |
| Working Capital Days | –80 (negative WC model) |
If margins were a person, they’d be applying for MGNREGA at this point.
9. 🧾 P&L Breakdown – Show Me the Money
- FY25:
- Revenue: ₹3,477 Cr
- PAT: ₹49 Cr
- EPS: ₹4.26
- OPM: 12%
- Q1 FY26:
- Revenue: ₹909 Cr
- PAT: ₹10.5 Cr
- EPS: ₹0.94
That’s a ~53% drop in profit in 1 year despite subscriber base being stable. Clearly, ARPU vs content cost mismatch is killing margins.
10. 🧯 Peer Comparison – Who Else in the Game?
| Company | P/E | ROCE | OPM | ROE |
|---|---|---|---|---|
| Sun TV | 12.8x | 20.4% | 53% | 15.7% |
| Zee | 17.4x | 9.2% | 14.6% | 6.8% |
| Den | 9.3x | 7% | 11% | 5.6% |
| Hathway | 29x | 2.9% | 16.7% | 2.2% |
| GTPL | 32.3x | 6% | 12% | 4.1% |
🚨 Overvalued + underperforming = recipe for indigestion. Even Den and Hathway are cheaper.
11. 🧿 Miscellaneous – Shareholding, Promoters
| Stakeholder | Mar 2025 |
|---|---|
| Promoters | 75.00% |
| FIIs | 8.39% |
| DIIs | 0.00% |
| Public | 16.61% |
- Promoter stake is stable, but no DII trust and falling FII interest.
- 28,968 shareholders = retail-heavy base holding for dividend.
12. 🧠 EduInvesting Verdict™
GTPL is stuck in a digital identity crisis:
- 📉 Cable TV declining
- 📶 Broadband not growing fast enough
- 🪙 ARPU stagnating
- 💣 OTT platforms replacing bundled TV
Despite all this, you’re paying 32x earnings for a 12% OPM stock.
Unless margins reverse (which hasn’t happened in 5 years), this is just a dividend trap dressed as a “stable utility”.
EduInvesting Fair Value Range: ₹72–₹88
✍️ Written by Prashant | 📅 11 July 2025
Tags: GTPL Hathway, Cable TV, MSO, Broadband Stocks, Dividend Yield, Media Stocks, OTT Disruption, PE Compression, Hathway Group, EduInvesting
