Section 1: Introduction

• Inflation is the gradual loss in purchasing power, primarily due increase in the price levels of goods and services over a given period.
• The Consumer Price Index (CPI) rose by 0.7% between September 2023 and September 2024, down from an annual increase of 1.7% in the 12 months to August 2024. Excluding energy and unprocessed food, the CPI went up by 2.4% in the 12 months to September 2024. The divisions with the largest increases in the 12 months to September 2024 were Restaurants & Hotels (+3.9%) and Alcoholic Beverages & Tobacco (+3.1%).
• On a monthly basis, Consumer prices fell by 0.9% in the month between August 2024 and September 2024.
• There are two types of inflationary trends - high and low inflation. The cycles of high and low inflation mainly depend on policy action by the Government to balance the demand and growth of the country.

• SunOpta Inc (TSX: SOY) is a Canadian company that focuses on a healthy product portfolio. The company's operating segment includes Plant-Based Foods and Beverages and Fruit-Based Foods and Beverages. It generates maximum revenue from the Plant-Based Foods and Beverages segment. Major Drilling Group International Inc (TSX: MDI) is engaged in the business of contract drilling, and it provides services to companies that are involved in mining and mineral exploration.

Section 2: Company Overview

SunOpta Inc (TSX: SOY) is a Canadian company that focuses on a healthy product portfolio. The company's operating segment includes Plant-Based Foods and Beverages and Fruit-Based Foods and Beverages. It generates maximum revenue from the Plant-Based Foods and Beverages segment. Kalkine’s Inflation Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

2.1 The Key Positives, Negatives, Investment Highlights, and Risks

Section3:  Financial Highlights

 3.1 Key Financial Highlights

Section 4:  Key Metrics

Below charts depict the change in Quick Ratio, Current Ratio, EBITDA Margins and Gross Margins for the firm for the last 5 reported quarters.

Section 5:  Stock Recommendation Summary

5.1 Valuation Methodology Illustrative EV to Sales Based

5.2 Price Performance and Stock Recommendation

The stock has witnessed an upside of ~2.09% in 1 month and of ~16.18% over the last 3 months. Moreover, the stock is trading above the average 52-week high price of CAD 10.40 and 52-week low price of CAD 3.82 providing an opportunity to ride the trend.

 5.3 One-Year Technical Price Chart

One-Year Technical Price Chart (as of October 10, 2024). Source: REFINITIV, Analysis: Kalkine Group

 5.4 Technical Summary

Major Drilling Group International Inc

Section 1: Company Overview

Major Drilling Group International Inc (TSX: MDI) is engaged in the business of contract drilling, and it provides services to companies that are involved in mining and mineral exploration. Kalkine’s Inflation Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.1 The Key Positives, Negatives, Investment Highlights, and Risks

Section2:  Financial Highlights

 2.1 Key Financial Highlights

Section 3:  Key Metrics

Below charts depict the change in Debt to Equity, Gross Margin, Operating Margin of the Company for the last five reported quarters.

Section 4:  Stock Recommendation Summary

4.1 Valuation Methodology Illustrative EV to Sales Based

4.2 Price Performance and Stock Recommendation

The stock has witnessed an upside of ~15.22% in 1 month and a downside of ~9.28% over the last 3 months. Moreover, the stock is trading slightly below the average of 52-week high price of CAD 10.39 and 52-week low price of CAD 6.81 providing an opportunity to ride the trend.

4.3 One-Year Technical Price Chart

 One-Year Technical Price Chart (as of October 10, 2024). Source: REFINITIV, Analysis: Kalkine Group 

4.4 Technical Summary

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is October 10, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.