Time period given by analyst is one year when Vodafone Idea Ltd. price can reach defined target.
Vodafone Idea Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 33189.37 Crore) operating in Telecommunications sector.
Vodafone Idea Ltd. key Products/Revenue Segments include Telecommunication Services, Other Operating Revenue and Traded Goods for the year ending 31-Mar-2020.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 9185.80 Crore, down -4.79 % from last quarter Total Income of Rs 9647.80 Crore and down -14.27 % from last year same quarter Total Income of Rs 10714.60 Crore. Company reported net profit after tax of Rs -7319.60 Crore in latest quarter.
Investment Rationale
The brokerage expects the churn for Vodafone Idea to continue given its stressed balance sheets restricting network spends as well as recent tariff hike in the 2G segment, which, it believes, will drive SIM consolidation. The brokerage consequently bakes in ~6 million customer exits in Q2. It builds in monthly ARPU growth of ~6% QoQ at Rs 110, largely driven by tariff hike seen in 2G and postpaid segment. It expects overall revenues to grow 2.1% QoQ at Rs 9347 crore. EBITDA, at Rs 3840 crore, is expected to grow 3.6% QoQ driven by ARPU growth. Reported margins are expected at 41.1%, up 60 bps QoQ. The company is expected to post a net loss of Rs 7439 crore. Key monitorable: Fund raising plans and ARPU trajectory commentary ahead.
Promoter/FII Holdings
Promoters held 72.1 per cent stake in the company as of March 31, 2021, while FIIs held 4.6 per cent, DIIs 1.1 per cent and public and other 22.2 per cent.
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