Shares of Vodafone Idea Ltd (VIL) cracked 22.15 per cent in Thursday's trade to hit their one-year low value of Rs 10.05. The stock was last seen trading 18.59 per cent lower at Rs 10.51. At this price, it has declined 38.14 per cent on a year-to-date (YTD) basis.
Today's sharp fall in the share price came after it was reported that the Supreme Court dismissed petitions filed by telecom companies, including VIL, to re-compute adjusted gross revenue (AGR) dues. Earlier, VIL reported an AGR liability of about Rs 70,300 crore, inclusive of accumulated interest. The operator's self-assessed AGR liability was 50 per cent lower at Rs 35,400 crore.
The counter saw heavy trading volume today as around 22.40 crore shares changed hands on BSE at the time of writing this story. The figure was way more than the two-week average volume of 4.79 crore shares. Turnover on the counter came at Rs 251.15, commanding a market capitalisation (m-cap) of Rs 71,272.83 crore. On technical setup, a few analysts suggested that the stock looked 'weak' on daily charts.
"The stock has broken its previous massive support zone of Rs 12. There can be a further downside in the near term. I would suggest that it is better to take an exit and move to another stock. Even if it does not go down from here, it is not going to do much good in the medium to long term. As of now, exit is the best strategy," Akshay Bhagwat, Senior Vice-President, Derivatives Research at JM Financial Services, told Business Today TV.
"The stock witnessed a breakdown on daily charts as it plunged below the previous swing low of Rs 12.5-12. The short-term view seems disruptive as it may plunge further. On the level-specific front, the intermediate support is placed around Rs 10-9.50 zone. On the flipside, a series of resilience could be seen at 12.50-13.50 levels in the comparable period," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"Vodafone Idea looked weak on daily charts can slip towards Rs 8 level in the short term. Resistance will now be seen at Rs 12," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
The scrip traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 19.01. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE, the company's stock has a negative price-to-equity (P/E) ratio of 3.01 against a price-to-book (P/B) value of (-)0.87. Earnings per share (EPS) stood at (-)4.29 with a return on equity of 28.82.
As of July 19, 2024, promoters held a 37.17 per cent stake in the telco.