Vodafone Idea shares zoom 14% today; key technical levels to watch out for

Shares of Vodafone Idea Ltd (VIL) jumped 13.76 per cent to hit a high of Rs 15.05 over their previous close of Rs 13.23. The stock was last seen trading 12.55 per cent higher at Rs 14.89. At this price, it has delivered multibagger returns in the past one year by rallying 109.40 per cent.

VIL recently said that Care Ratings Ltd (CARE), has revised its rating assigned to the long-term bank facilities and short-term bank facilities. The rating rationale will be uploaded on CARE's website in due course, it added.

The telecom operator had issued a clarification over a news report, titled "Ericsson India in talks with Vodafone Idea for a 5G deal" last month.

"Ericsson India is one of the network vendor of the company. It is enlarging its footprints with 5G roll out and in connection with the same, the company is in discussions with various network vendors, including Ericsson, for supply of network gears for the 5G rollout," VIL stated in a BSE filing.

The company's consolidated loss after tax widened to Rs 7,675 crore during the fourth quarter (Q4 FY24). Consolidated revenue, however, rose 0.7 per cent on a year-on-year (YoY) basis to Rs 10,607 crore in Q4 FY24.

VIL's 4G subscriber base grew to 12.63 crore as on March 31, 2024, from 12.26 million a year ago. But its overall subscriber base fell about 6 per cent to 21.3 crore.

The telco's average revenue per user (ARPU), a key performance metric for telecom firms, rose to Rs 146 from Rs 135 a year earlier.

The firm has successfully raised a total of Rs 18,000 crore from its follow-on offering (FPO). It is planning to roll out its 5G services in select areas.

VIL CEO Akshaya Moondra said that the 5G rollout could cover 40 per cent of the company's overall revenue base in the next 24-30 months.

On technical setup, support on the counter could be seen at Rs 15, followed by Rs 12 level. With that being said, near-term upside target will Rs 18, a few analysts said.

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "Expected near-term target on the counter will be Rs 18. Keep strict stop loss placed at Rs 12."

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The stock has potential to hit an upside target of Rs 18 with a stop at Rs 15."

Vodafone Idea was formed in 2018 when Vodafone Group merged its India business with Idea Cellular. As of April 23, 2024, promoters held a 36.87 per cent stake in the company.