courtesy: mint
On Thursday, domestic brokerage Kotak Institutional Equities maintained it stance of sell, while also labelling Vodafone Idea a high- risk, high- reward opportunity, but it also said that in the bull case scenario, the share can rally up to Rs. 23.
“In our bull case, we assume a sharper 10% 10-year ARPU CAGR (versus our base case estimate of -8.5%). In this case, our FV for Vi could potentially increase to Rs. 23/share,” said Aditya Bansal of Kotak Equities. He continued that in order for this to happen, several of other things such as AGR waiver, moderation in competitive intensity from peers, and sharper tariff hikes, needs to fall in place.
Earlier today, Vodafone Idea shares were trading 1.5% higher today Rs.. 13.38 on BSE. The stock is in focus today as the debt ridden telco, which recently concluded its Rs. 18,000 crore FPO, is set to announce its March quarter results later in the day.
In Q4, the net loss of Vi is expected to be in the range of Rs. 7,307.20 crore to Rs. 7,680 crore. Meanwhile, the revenue for the quarter is expected to be around Rs. 10,690 crore.
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