3 weeks ago
Vodafone Idea shares jump 3% after Q1 results; analysts mixed
Vodafone Idea is a big mobile phone company.
It shared news about its latest three months of business.
During those months, the company still lost money, but it lost much less than before.
This made investors happy, and the company's shares went up by 3%.
The company also said more people joined its network.
Customers are using more internet data and paying a bit more for service.
Some money experts think the company will keep improving.
Other experts are not so sure and say the company still needs more money from banks.
Different experts set different target prices for the shares, from Rs 9 to Rs 12.60.
Vodafone Idea shares rose 3% after Q1 results showed narrowing losses but no major surprises.
Net loss narrowed to Rs 3,754 crore in the June quarter from Rs 6,608 crore a year earlier.
Consolidated Ebitda rose 9.1% year-on-year to Rs 5,034 crore, helped by subscriber additions and broadband upgrades.
Analysts stayed cautious: Nomura rated 'Neutral' at Rs 12.60, Axis Capital 'Reduce' at Rs 12.25, and JPMorgan 'underweight' at Rs 9.
Subscriber base grew by 3 lakh to 19.31 crore, the first quarterly addition since the merger, with ARPU up 10.2% to Rs 195.
- Who
- Vodafone Idea (VIL), with analyst assessments from Nomura, Axis Capital, and JPMorgan.
- What
- Vodafone Idea reported June quarter results with narrowed losses, and its share price jumped 3% as analysts issued target prices.
- Where
- India (inferred from rupee-denominated figures and Vodafone Idea's telecom operations).
- When
- June quarter (Q1), with the analyst meet scheduled at 2.30 pm on the day of the results.
- Why
- Investors responded to narrowing losses, the first subscriber addition since the merger, and ARPU growth, while some analysts caution that bank funding remains crucial.
Optimistic view
Cautious view
Stock outlook
Optimistic view
Shares rose 3% as losses narrowed and the company added subscribers for the first time since its merger, signaling a recovery.
Cautious view
Analysts kept cautious ratings, with JPMorgan 'underweight' at Rs 9 and Axis Capital 'Reduce' at Rs 12.25, saying results lacked major surprises.
Funding and capital raise
Optimistic view
Nomura says a successful debt-capital raise, tariff hikes, faster subscriber additions, and strategic equity investment could act as key catalysts providing confidence capital.
Cautious view
JPMorgan says bank funding remains crucial to Vodafone Idea's outlook, supporting its underweight stance.
Key facts
- Net loss (Q1)
- Rs 3,754 crore, narrowed from Rs 6,608 crore YoY
- Consolidated Ebitda
- Rs 5,034 crore, up 9.1% YoY
- Subscriber base
- 19.31 crore (net addition of 3 lakh)
- ARPU (ex-M2M)
- Rs 195, up 10.2% YoY from Rs 177
- 4G/5G subscribers
- More than 67% of total subscriber base
- Data usage per 4G/5G user
- 21.7 GB per month; 88.4 Pb daily traffic
- Nomura rating
- Neutral, target Rs 12.60
- JPMorgan rating
- Underweight, target Rs 9
Quotes
Nomura
Investment analyst from Nomura Securities
“We maintain our Neutral rating and target price of Rs 12.60 for VIL, based on 14 times FY28F EV/Ebitda. We prefer Bharti Airtel among the telecom stocks under our coverage. Key catalysts for VIL: successful debt-capital raise; industry tariff hikes; acceleration on subscriber additions; and strategic equity investment that may provide the much-needed confidence capital”
businesstoday.in
Sources
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