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Last Updated : Dec 03, 2019 09:54 AM IST | Source: Moneycontrol.com

Vodafone Idea share price slips 10% on tariff hike; CLSA retains sell

The research house CLSA has retained sell call on Vodafone Idea but raised target price to Rs 6.50 from Rs 5.50 per share.

 
 
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Vodafone Idea share price slipped over 10 percent in the early trade on December 3 after the company's new tariff plan had come in to effect from midnight.

The company announced new tariffs/plans for its prepaid products and services, to be available across India starting 00:00 hours of December 3, as per the BSE release.

The price for the 365-day validity plan with the daily data usage limit of 1.5 GB per day will cost 41.2 percent more at Rs 2,399 from December 3 as against 1,699 at present.

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The company revised the rates of the plan with unlimited mobile and data services and also introduced some new plans.

Also Read - Mobile tariff hike will help the telcos but impact on consumer key for success

Research house CLSA has retained sell call on Vodafone Idea but raised the target price to Rs 6.50 from Rs 5.50 per share.

The prices have factored in 40 percent tariff hikes by FY22, and the key challenge remains the market-share loss.

The gearing will be out of control at 5.9x despite the EBITDA jump of 67 percent by FY22, the and company will find it difficult to fund hefty Rs 16,000 crore of annual spectrum payments, it added.

At 09:34 hrs, Vodafone Idea Limited was quoting at Rs 6.99, down Rs 0.80, or 10.27 percent, on the BSE.

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First Published on Dec 3, 2019 09:54 am
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