Vodafone Idea shares rally 8% ahead of Feb 27 board meet to consider fund raising

Vodafone shares had closed over 6% higher on Thursday after the Aditya Birla Group Chairman Kumar Mangalam Birla said that they are on the look out for new investors for Vodafone Idea. Birla made these remarks at the launch of Grasim's paints business. Birla made these remarks at the launch of Grasim's paints business.

On Friday, VIL shares was seen trading higher than the 5-, 10-, 20-, 30-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) stood at 59.9, indicating the stock is neither oversold nor overbought.

The VIL stock has a one-year beta of 0.9, indicating low volatility,

Vodafone Idea disappointed the Street with its third quarter (Q3FY24) results. The telecom company recorded a net loss of ₹6,985.9 crore for the October-December period, narrowing 12.56% from ₹7,990 crore in the same period a year ago.

Following Vodafone Idea's quarterly results, analysts at UBS had assigned a 'Sell' rating on the counter, with a target price of ₹11.5 per share. Nuvama had said that they would remain watchful of the capital-raise and ARPU trajectory. Vodafone Idea needs to ensure it does not fall too far behind its peers in the 5G rollout, the domestic brokerage house suggested, as it slashed its FY24 estimates for Vodafone Idea, mainly due to postponement of tariff hikes and lower subscriber addition due to lagging capex.

"Our FY26 estimates do not yet include spectrum dues repayment as the moratorium period ends. Our valuation too, does not include AGR dues," Nuvama said while suggesting a target price of ₹7 on the counter.

For the month of December, Vodafone Idea lost 13.7 lakh users, compared to the 10.7 lakh it lost in November, according to the recent TRAI data.