Vodafone Idea shares up 106% in a year; here's what analysts say

Shares of Vodafone Idea Ltd (VIL) have given multibagger returns in the past one year. The stock was last seen trading 0.99 per cent higher at Rs 14.33 on Tuesday. At this price, it has rallied 106.19 per cent in a year. That said, the scrip has slipped 15.66 per cent on a year-to-date (YTD) basis.

The telecom operator, in an exchange filing, said it has received an order under the Central Goods and Services Tax Act, 2017, imposing a penalty of around Rs 44.05 lakh. "The company does not agree with the order and will take appropriate action(s) for rectification/reversal of the same," it underscored.

Separately, VIL has informed that its extraordinary general meeting (EGM) is scheduled to be held on April 2, 2024.

The company has recently announced its plan to raise around Rs 45,000 crore via a combination of equity and debt. VIL's board has also approved equity fundraise of up to Rs 20,000 crore.

"The telco will call for a meeting of its shareholders on April 2 and post-shareholder approval it expects to complete the equity fundraise in the coming quarter. The promoters will also participate in the proposed equity raise, as committed earlier," Voda Idea stated.

The company remains actively engaged with its lenders for tying-up the debt funding, which will follow the equity fundraise, it added. VIL mentioned that the equity and debt fundraising will enable it to make investments towards significant expansion of 4G coverage, 5G network rollout and capacity expansion.

In a recent earnings call, VIL CEO Akshay Moondra hinted that the telco could roll out its 5G services within six to seven months after the fundraise.

Technical analysts largely recommended that the counter looked 'bullish' on daily charts. Immediate support could be seen at Rs 13.4-13.3 levels.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has taken support near Rs 13.40 with a double bottom formation visible on daily charts to signify bottoming out. One can anticipate a further upward move. A decisive breach above Rs 14.90 level will improve the bias for an upside target of Rs 18.40."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 12.25 and resistance at Rs 15. A decisive close above Rs 15 level may trigger a further upside till Rs 16."

AR Ramachandran from Tips2trades said, "Vodafone Idea looks bullish on daily charts with strong support at Rs 13.30. A daily close above resistance of 16 could lead to a target of Rs 19 in the near term."

As of December 2023, promoters held 50.36 per cent stake in the company.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)