Vodafone Idea Share Price: 16 May 2024
After a continuous decline in the domestic stock market last week, this week is expected to see some fluctuations. However, investors are still cautious amidst the market volatility. While many shares experienced a drop due to the market fluctuations, some are showing positive growth, with Vodafone Idea’s shares being one of them.
Telecom operator Vodafone Idea Limited saw a 5% increase in its shares on Tuesday, reaching an intraday high of Rs 13.15. One of the major reasons for this surge in shares is the report by Axis Capital stating that post the general elections, telecom operators could potentially increase rates by around 25%. According to brokerage firm Citigroup, there is a possibility of a jump of up to 100% in the company’s shares in the coming days.
On Thursday (16 May 2024), the shares were trading at Rs 13.0 with a 1.29% decline. In the December quarter, Vodafone Idea had an average revenue per user of Rs 145, which was the lowest among its competitors. In the third quarter, Bharti Airtel’s ARPU was Rs 208 and Reliance Jio’s ARPU was Rs 145.
City brokerage recently stated that they are optimistic about Vodafone Idea’s management tariff hike and hope for it post-election, which is crucial for the industry considering the network and spectrum costs. They mentioned, besides tariff hike, the conversion of 2G subscriptions to 4G should benefit the company, as 42% of Vodafone Idea’s customers are still not on 4G.
The stock is up 90% in the past year, but down 23% YTD. In the long term, the share has dropped by 89%. In 2015, the share price was Rs 118. The maximum and minimum price of Vodafone Idea’s shares in the last 52 weeks is Rs 18.42 and Rs 6.87, respectively.
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