New Delhi: Vodafone idea share price was up 8.19 per cent on Friday to Rs 15.15 apiece. The telco’s stock surged after Swiss brokerage UBS raised its target price on the company’s stock with a BUY call. UBS revised the target price for Vodafone Idea shares to Rs 18 apiece from Rs 13.10 apiece earlier. The brokerage changed the rating on Vodafone Idea to BUY from neutral.
The telco’s stock is likely to witness a 70-80 per cent rally is the Supreme Court allows a reduction in AGR dues, according to UBS. If the AGR is waived completely, UBS expects the direct cash flow value of the stock to touch Rs 24 per share from Rs 12 per share at present, it said in a report. AGR stands for adjusted gross liabilities.
Vodafone Idea has made multiple efforts to overcome its cash deficit. Most recently, it raised Rs 18,000 crore through a follow on public offer. The company also announced plans for a preferential share issue to a unit of the parent company Aditya Birla Group. The plan is to issue over 139.54 crore shares at a price of Rs 14.87 apiece totalling Rs 2,075 crore to Oriana Investments.
Vodafone Idea is expected to hike tariff by 15-20 per cent over the coming 12-24 months. UBS had also forecasted a 10 per cent tariff hike in Q1FY25.
Nuvama Research indicated that Vodafone Idea’s share was an ideal candidate for inclusion in the MSCI index when the index operator conducts its next review in August. Vodafone Idea’s stocks rose 8.99 per cent over the past month, 13,86 per cent over the past 6 months, and 118.71 per cent over the past year.
Vodafone Idea Q4 result
Vodafone Idea’s total revenues for Q4Fy24 stood at Rs 10,606 crore, compared to 10,531 crore in the year ago period.
The company’s net loss for the quarter stood at Rs 7,676.60 crore compared to Rs 6,418.90 crore in the year ago period.
The telco’s average revenue per user stood at Rs 146 apiece, up 7.6 per cent on-year basis.
Vodafone Idea’s share price surged over 8 per cent during the day’s trade on Friday, backed by a change in its rating to BUY from Neutral by Swiss investment bank and brokerage UBS. The company’s stock has surged over 13 per cent in the past month, according to exchange data. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
