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Hathway Cable and Datacom has rallied over 42 percent, and Siti Networks has gained over 7 percent in the last three months. These cable service providers have outperformed the NSE Nifty Media Index, which has retreated nearly 12.9 percent in the same period.
Moreover, Hathway and Siti are the only two stocks that have registered gains in the 15-stock index.
Why?
These companies are expected to pick up users as we approach the December 31 deadline for the implementation of Phase IV of government's push to switch users from cable connections to DTH platforms.
Morgan Stanley, which is overweight on Hathway Cable and Datacom, says the company's cable TV monetisation is gathering momentum and its broadband business continues to gain traction.
Motilal Oswal, which has a buy on Siti Network, expects the subscriber base to pick up substantially post-digitisation.
So even as demonetisation poses a challenge to collections in the November-December period, the two companies are projected to post robust growth in the new year.
That's your chart of the day.
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