Shares of telecom service providers were in focus at the bourses on Tuesday amid hopes of tariff hike in the forthcoming months. Among individual stocks, Vodafone Idea (Vi) rallied 12 per cent to Rs 10.20 in the early morning deal after media report suggested that Vi is considering increasing tariffs 15-20 per cent by the end of the year or early next year.
This is on the expected lines as the company is struggling with cash burn and aiming fund raise, according to analysts.
At 09:44 am, the stock was trading 7 per cent higher at Rs 9.74, as compared to 0.64 per cent rise in the S&P BSE Sensex. Trading volumes on the counter nearly doubled with a combined 370 million equity shares changing hands on the NSE and BSE till the time of writing of this report.
Shares of Bharti Airtel, on the other hand, were up 3 per cent to Rs 495, its highest level since September 21, 2020. With today's gain the stock has surged 26 per cent from its low of Rs 394 hit in October.
In the past three months, the stocks of Vodafone Idea (up 8 per cent) and Bharti Airtel (down 6 per cent) have underperformed the S&P BSE Sensex, which gained 15.5 per cent during the same period.
Analysts at ICICI Securities believe higher 4G subscribers base will enable Bharti to better transfer tariff hike into average revenue per user (ARPU) whenever it happens.
"Bharti's India mobile print shows marked improvement in many areas such as growth in total subs without ARPU dilution which shows quality of customer addition; lower churn rate increasing life-time value of customers and continued delivery of 4G net add, which has now likely matched the market leader. Our estimates for FY21 had downside risk on delay in tariff hike. However, robust Q2FY21 performance has offset much of it," the brokerage firm said in result update with 'BUY' rating on the stock and target price of Rs 655.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
"Idea" - Google News
November 17, 2020 at 11:27AM
https://ift.tt/2IDvnQZ
Telecom shares in focus; Vodafone Idea up 12%, Bharti Airtel gains 3% - Business Standard
"Idea" - Google News
https://ift.tt/2VWDFI5
https://ift.tt/3d3vX4n
Bagikan Berita Ini
0 Response to "Telecom shares in focus; Vodafone Idea up 12%, Bharti Airtel gains 3% - Business Standard"
Post a Comment