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Hathway Cable and Datacom Limited (NSE:HATHWAY), a media company based in India, saw a double-digit share price rise of over 10% in the past couple of months on the NSEI. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Hathway Cable and Datacom’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. See our latest analysis for Hathway Cable and Datacom
What is Hathway Cable and Datacom worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 8.56% below my intrinsic value, which means if you buy Hathway Cable and Datacom today, you’d be paying a reasonable price for it. And if you believe the company’s true value is ₹19.63, then there isn’t much room for the share price grow beyond where it’s currently trading. Furthermore, it seems like Hathway Cable and Datacom’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.
What does the future of Hathway Cable and Datacom look like?
NSEI:HATHWAY Future Profit August 7th 18 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matters the most, a more compelling investment thesis would be high growth potential at a cheap price. With revenues expected to grow by 33.78% over the next couple of years, the future seems bright for Hathway Cable and Datacom. If the level of expenses is able to be maintained, it looks like higher cash flows are on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? HATHWAY’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuate below the true value? Are you a potential investor? If you’ve been keeping an eye on HATHWAY, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the prospect of growth is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Hathway Cable and Datacom. You can find everything you need to know about Hathway Cable and Datacom in the latest infographic research report. If you are no longer interested in Hathway Cable and Datacom, you can use our free platform to see my list of over 50 other stocks with a high growth potential. To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements. The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.