Introduction

Hathway Cable & Datacom Ltd. engages in the provision of internet services and allied services. It operates through the Broadband Business and Cable Television segments. The Broadband Business segment offers cable broadband services. The Cable Television segment include digital cable subscribers and households Offers cable television services.

Observation

Stock shows a bullish momentum with a huge trading volume and bullish crossover at 18th of June. stock show a positive relative strength index which indicate 60 level breakouts on all time frames. open marubozu candlestick on monthly TF and breakout its last kink which is 23.90 levels. stock trend is change from 1st of march see on the chart also it can go 33-38 levels easily if it sustains above 23 and 28 levels.

Let's touch fundaments

stock MTK is 4464Cr that means this is not a large cap company like other 10000Cr+ company, so this is in small cap company category. stock is debt free, 20% public holding, 75% promoter holding, that represent stock is in strong hands, zero pledge, ROCE 2.29 and ROE is 1.58 which is low it should above like (18% to 30% ROCE & 15% to 25% ROE)

For a large cap 10000Cr company ROCE & ROE should be

18% to 30% ROCE

15 to 25% ROE

Technical Analysis & indicators 🔍

Day chart

News of the day

1. CPI: India's headline retail inflation rose to a four-month high in June due to elevated food prices, according to data released by the Ministry of Statistics and Programmed Implementation on Friday. The consumer price index accelerated to 5.08% in June from 4.75% in May but remained within the Reserve Bank of India's tolerance range of 2%-6%.Food inflation, which accounts for nearly half of the overall consumer outlays, jumped to 9.36% in June from 8.69% a month prior. Among the food and beverages sub-group, vegetable prices continued to see the highest year-on-year increase at 29.32%, followed by pulses and product prices at 16.07% and cereal and products prices at 8.75%.

If consumer inflation accelerates, it could mean the following for the stock market:

- Higher cost of living and lower purchasing power

- Lower returns net of inflation

- Higher interest rates and higher cost of equity

- Negative impact on consumer-driven stocks

- Growth stocks may suffer during inflation periods

- Negative impact on bonds and equities

- Increase in cost of capital

- Increase in the future cash flows of the company

- Increase in GDP growth

- Increase in corporate results

- Increase in stock market indices

2. Cipla Pharmaceutical firm manufacturing facility in Kurkumbh, Maharashtra, India, received a "Voluntary Action Indicated" classification from US Food & Drug Administration following a good manufacturing practices inspection at the site, according to an Indian bourse filing on Saturday. A VAI classification means objectionable conditions or practices were found, but the agency is not prepared to take or recommend any administrative or regulatory action, according to the US FDA's website.

If a pharma company received a Voluntary Action Indicated (VAI) classification, it means that:

- The FDA found some objectionable conditions or practices at the company's facility

- The FDA does not intend to take any regulatory or administrative action against the company at this time

- The company must take voluntary corrective action to address the deviations from Good Manufacturing Practices (GMP) identified by the FDA

- The classification does not warrant regulatory action, but it is a signal for the company to take corrective measures

3. MRF, Apollo Tyres, Ceat, JK Tyre gain between 1.8%-8.5%

Most of the Tyre companies had guided for 4 - 5 per cent rise in raw material costs for Q1FY25 versus Q4FY24 (wherein natural rubber was quoting at Rs 180 per kg) and indicated at partial pass on the same to end consumers through 1 - 2 per cent price hike. With rising international prices and the end of the peak production season in India, coupled with the export incentive of Rs 5/kg, Natural Rubber prices surged to Rs 185/kg in March 24 from Rs 150/kg in Q3FY24. Additionally, port restrictions on Natural Rubber imports continued in India, with imports only allowed at Nhava Sheva and Chennai ports. This move shall limit margin fall of the domestic Tyre companies with most of them expecting to realize and sustain mid-teens EBITDA margin profile. Meanwhile, the Tyre sector is expected to witness steady demand, supported by the government’s persistent focus on infrastructure development and increasing consumer confidence. The overall outlook for the Tyre industry remains positive.

Educational content

Tue Jul 16, 2024