Vodafone Idea Share Price Soars 5% to Rs 13.15
Long-awaited surge in Vodafone Idea shares as it closed at Rs 13.15 on Tuesday, rising by 5%. The sudden spike in Vodafone Idea shares is attributed to the company’s decision to increase its fees.
Positive Outlook for Vodafone Idea Shares
Axis Capital firm predicts a 25% increase in telecom companies’ rates post general elections. City brokerage firm expects Vodafone Idea shares to double in the coming months.
Steady Growth in Share Price
On Wednesday, May 15, 2024, Vodafone Idea shares traded at Rs 13.35, a 0.75% increase. The following day, shares rose by 1.06% to Rs 13.3.
Improving Revenue Per User
In the December quarter, Vodafone Idea’s average revenue per user was Rs 145, the lowest among competitors. Bharti Airtel’s ARPU was Rs 208, and Reliance Jio’s was Rs 145.
Potential Tariff Increase for Vodafone Idea
If Vodafone Idea increases its ARPU by 5%, the company’s per share income could rise by 12%. This hike is expected post Lok Sabha elections. Additionally, improvements in 2G subscriptions and 4G categories could benefit from increased ARPU.
Impressive Growth in Share Price
Vodafone Idea shares have surged by 90% in the past year, offering investors a negative return of 23% YTD. However, the company’s shares have weakened by 89% in the long term. In 2015, Vodafone Idea shares were trading at Rs 118, with a 52-week high of Rs 18.42 and a low of Rs 6.87.
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