Shares of Vodafone Idea fell nearly 3% on Friday, Nov. 13, after the company reported a higher consolidated net loss for the second quarter compared with the previous quarter.
Around 9:31 am, the stock was trading at Rs 12.61 apiece on the NSE, down 2.85% from its previous close at Rs 12.97. Meanwhile, the Nifty 50 is also down around 0.7%.
Vodafone Idea reported a consolidated net loss of Rs 5,975 crore for the second quarter, compared with Rs 3,754 crore in the previous quarter. Revenue, however, increased marginally by 1.7% sequentially to Rs 11,884 crore from Rs 11,689 crore.
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Earnings before interest, taxes, depreciation, and amortisation declined 1.1% to Rs 4,981 crore from Rs 5,034 crore, with Ebitda margin contracting to 41.9% from 43.1%.
Having said that, the company also reported an improvement in average revenue per user to Rs 198 from Rs 195, besides reporting a one-time loss of Rs 462 crore, compared with a gain of Rs 1,611 crore in the previous quarter.
Vodafone Idea Share: What Brokerages Say
JM Financial maintained its Add rating on Vodafone Idea with a target price of Rs 14.7. The brokerage said the company's long-term viability depends on government relief for spectrum and adjusted gross revenue liabilities. Approval of Rs 250 billion in bank funding remains critical for network expansion and subscriber retention. It also flagged spectrum repayments of Rs 70 billion, Rs 150 billion, and Rs 270 billion over fiscal 2027 to fiscal 2029 as significant financial risks.
JPMorgan maintained its Underweight rating on the stock with a target price of Rs 9. The brokerage said bank funding remains important for network expansion, market share, and subscriber retention. It also noted that subscriber losses continue after excluding machine-to-machine connections, despite improving headline additions, while average revenue per user growth remains modest. Fundraising progress remains a key near-term factor, it said.
Vodafone Idea Share Price Movement
The telecom stock has been muted over a month now, with a 1.6% decline, however, it has gained around 20.34% over past year.
Currently, it is trading at a price-to-earnings multiple of 3.8 times, with a market cap of Rs 1,37,595.65 crore.
Also Read: Vodafone Idea Q2 Review: Brokerages Flag Funding Concerns Despite Revenue Growth
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