Vodafone Idea stock doubles in just one month, CLSA sees more upside

by mehekkaoberoi
  • Shares of Vodafone Idea have more than doubled in just one month.
  • The stock on June 4 ended at Rs 8.9, up 2.15 since May 6.
  • While the Street has been largely bullish on the telecom sector, high debt and uncertainty over payment of adjusted gross revenue (AGR) dues had kept a leash on Vodafone Idea’s stock price even as rival Bharti Airtel continued to charge ahead.
  • Market players said reports that Google was eyeing stake in Vodafone Idea had given an impetus to its stock price.
  • Influential brokerage CLSA on June 3 issued a ‘buy’ rating on the stock with a 12-month price target of Rs 12.
  • Vodafone Idea’s Arpu Rs 109 is nearly 20 per cent lower than Airtel.
  • CLSA expects the company’s Arpu to grow by 30 per cent by FY22 underpinned by tariff hikes.
0 comment

Related Articles