Synopsis: Vodafone Idea's 4G subscriber base has grown up to Rs.12.63 crore by March 31, 2024, up from Rs.12.26 crore the previous year, though its overall subscriber base fell by 6% to Rs.21.3 crore.
Vodafone Idea's 4G subscriber base increased to Rs.12.63 crore as of March 31, 2024, from Rs. 12.26 crore the previous year. However, its overall subscriber base declined by about 6% to Rs.21.3 crore.
In Tuesday's trading session, Vodafone Idea Ltd shares rose by up to 3.46% to Rs. 13.75.
Nomura India analysts raised their target price for the telecom operator to Rs. 15 per share from Rs. 6.50, upgrading the stock to 'Neutral.'
They noted that Q4 FY24 results were in line with expectations, with the rate of subscriber loss slowing and average revenue per user (ARPU) showing a modest increase.
Vodafone Idea's consolidated loss after tax widened to Rs. 7,675 crore in Q4 FY24.
Nonetheless, the company's consolidated revenue grew by 0.7% year-on-year to Rs. 10,607 crore for the quarter ending March 31, 2024.
The telco's ARPU, a key performance indicator, rose to Rs. 146 from Rs. 135 the previous year.
On the technical side, support is seen at Rs. 12.70, followed by Rs. 12.20 and Rs. 12.10 levels.
A decisive move above the Rs. 14.50-14.70 zone is needed for further upside potential.
"Rs. 12.10 level is a crucial support zone. A decisive breach above Rs. 14.50-14.70 levels is necessary to further strengthen the trend and establish conviction for a further rise. The next higher targets would be between Rs. 16.30 and Rs. 18," said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.
"For now, Rs. 12.70 level has substantially supported the counter, and the view remains intact until it manages to hover above the same. On the higher end, stiff resistance is placed around the Rs. 14-14.50 zone, and a sustainable breach could only trigger a fresh round of traction," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"Vodafone Idea shares can hit an upside target of Rs. 14.50 in the near term. Keep stop loss placed at Rs. 12.20," advised Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
Vodafone Idea was formed in 2018 through the merger of Vodafone Group's India business with Idea Cellular.
In conclusion, Vodafone Idea's share price saw a notable rise, fueled by an increase in its 4G subscriber base and a moderate uptick in ARPU, despite an overall decline in total subscribers and a widened consolidated loss.
Analysts have adjusted their outlook, with Nomura India raising the target price and upgrading the stock to 'Neutral.' Technical analysts highlight critical support and resistance levels, suggesting potential for further upside if key thresholds are breached.
The company, formed through the 2018 merger of Vodafone Group's India business and Idea Cellular, continues to navigate a challenging financial landscape with cautious optimism from the market.
Disclaimer: This stock market news is provided for informational purposes only and should not be taken as definitive investment advice. We encourage readers to consult with a qualified financial advisor before making any investment decisions.
Related Questions
1. How has Vodafone Idea's 4G subscriber base changed recently?
Vodafone Idea's 4G subscriber base increased to Rs. 12.63 crore as of March 31, 2024, from Rs. 12.26 crore the previous year.
2. What was the market reaction to Vodafone Idea's recent performance?
In Tuesday's trading session, Vodafone Idea Ltd shares rose by up to 3.46% to Rs. 13.75.
3. How have analysts adjusted their outlook on Vodafone Idea?
Nomura India analysts raised their target price for Vodafone Idea to Rs. 15 per share from Rs. 6.50, upgrading the stock to 'Neutral.'
4. What were the key highlights of Vodafone Idea's Q4 FY24 results?
Vodafone Idea's Q4 FY24 results showed a consolidated revenue growth of 0.7% year-on-year to Rs. 10,607 crore, with ARPU rising to Rs. 146 from Rs. 135 the previous year.
5. What are the key technical levels for Vodafone Idea's share price?
Key technical levels for Vodafone Idea's share price include support at Rs. 12.70, Rs. 12.20, and Rs. 12.10, with resistance in the Rs. 14.50-14.70 zone and potential targets between Rs. 16.30 and Rs. 18.
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