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What should investors do with Vodafone Idea after Q4 earnings: buy, sell or hold?

For the full financial year 2020-21, the debt-ridden telecom firm's net loss came in at Rs 44,233.1 crore against Rs 73,878.1 crore in the previous financial year.

July 01, 2021 / 09:47 IST
     
     
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    Vodafone Idea share price was locked in a 10 percent lower circuit in the early trade on July, 1 a day after the embattled telecom firm reported a consolidated net loss of Rs 7,022.8 crore for the quarter ended March 31, 2021.

    The firm had posted a loss of Rs 11,643.5 crore in the corresponding quarter of the previous fiscal. In the December quarter, the company's losses stood at Rs 4,532.1 crore.

    There were pending sell orders of 6,692,625 shares, with no buyers available.

    For the full financial year 2020-21, the debt-ridden telecom firm's net loss came in at Rs 44,233.1 crore against Rs 73,878.1 crore in the previous financial year.

    Its revenue from operations stood at Rs 9,607.6 crore, down 18.26 percent against Rs 11,754.2 crore registered in the March 2020 quarter. In the December quarter, revenue was Rs 10,894.1 crore.

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    Also Read: Vodafone Idea posts net loss of Rs 7,022.8 crore for March quarter

    Here is what brokerages have to say about the stock and the company after the March quarter earnings:

    Goldman Sachs | Rating: Sell | Target: Rs 3

    The company lost another 130 bps of revenue market share in the March quarter. The cumulative revenue market share loss has mounted to 630 bps in the last 12 months.

    It has large repayments due starting December 2021. The company may have a Rs 23,400 crore cash shortfall until April 2022. Capex too remains under pressure. resulting in continued market share loss.

    CLSA | Rating: Underperform | Target: Rs 10

    The revenue & EBITDA were below estimates. The decline in subscribers is in-line and 4G additions encouraging at 4 million.

    Its AGR is headed for a financial crisis when annual payments come. The review of AGR and tariff hikes is inevitable, else the sector is headed toward a duopoly.

    At 09:19 hrs Vodafone Idea Limited was quoting at Rs 8.96, down Rs 0.99, or 9.95 percent on the BSE.

    Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

    Moneycontrol News
    first published: Jul 1, 2021 09:47 am

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