Brokerage firm Nomura in its latest note has upgraded the telecom player Vodafone Idea to Neutral and has increased its target price for Vodafone Idea stock to Rs 15 against Rs 6.5 earlier. The brokerage believes that the outlook for the overall industry has improved considerably.
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All players aligned on the need for ARPU hikes and the industry setting into a 3-private player market. The three private players currently are Jio, Bharti Airtel and Vodafone Idea. As said by the management of Airtel in their Q4 earnings call, Nomura also expects a 15% hike in tariffs post the conclusion of Lok Sabha elections 2024. Tariff hike also remains a key trigger for the Vodafone Idea stock, Nomura added. Furthermore, it expects the government to offer some form of relief to the company when payments in FY25 come up.
“A long journey remains to be traversed, but the tempest has largely passed and VIL is gearing up to meet clear skies ahead,” said Nomura.
