Shares of Vodafone Idea Ltd on Thursday slipped 4.08 per cent to hit a one-year low value of Rs 6.82 against their previous close of Rs 7.11. The stock eventually fell 2.67 per cent to settle at Rs 6.92. It saw high trading volume on BSE today as around 7.21 crore shares changed hands. The figure was way higher than the two-week average volume of 3.66 crore shares. Turnover on the counter came at Rs 49.98 crore, commanding a market capitalisation (m-cap) of Rs 48,232.27 crore.
Technically, immediate support on the counter could be seen at Rs 5.7 level. "Vodafone Idea has been in a strong bearish trend. Given the current momentum, it is highly likely that the stock will test Rs 5.70 level," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One. He advised avoiding trades and remaining on the sidelines until the stock demonstrates a significant and sustainable rebound above the Rs 9-9.50 range.
"The share price of Vodafone is currently facing substantial selling pressure, having lost 65 per cent of its gains over the past 21 weeks. We expect a further decline in the price below Rs 5.70 level and recommend avoiding purchase or averaging under the current market conditions," said Kushal Gandhi, Technical Analyst at StoxBox.
On the earnings front, the telecom operator posted a narrower year-on-year (YoY) consolidated net loss in the September 2024 quarter (Q2 FY25). During the quarter under review, VIL's loss came at Rs 7,175.9 crore as against Rs 8,737.9 crore in the year-ago period. However, the company's loss widened on a sequential (quarter-on-quarter) basis. It had posted a loss of Rs 6,432.1 crore in the previous quarter.
Revenue from operations in Q2 FY25 rose 2.02 per cent to Rs 10,932.2 crore from Rs 10,716.3 crore in the corresponding period last year.
VIL's total subscriber base stood at 20.5 crore and 4G subscriber base came at 12.59 crore in Q2 FY25. The telco's ARPU, a key performance metric for telecom firms, was at Rs 166.
The firm has successfully raised Rs 18,000 crore from its follow-on offering (FPO). It is currently involved in the process of rolling out its 5G services in select areas.
Vodafone Idea was formed in 2018 when Vodafone Group merged its India business with Idea Cellular. As of September 2024, promoters held a 37.32 per cent stake in the telco and the government's shareholding was at 23.15 per cent.