On Friday, Vodafone Idea's share price on the NSE rose over four percent, following a double upgrade from UBS to buy. The global brokerage raised the target price for Vodafone Idea shares to Rs 18, representing a potential 28 percent increase. However, despite this positive news, Vodafone Idea still reported a widening of losses in the March quarter due to rising interest and financing costs. Stay updated on the latest business news and stock market updates on Zee Business and don't forget to check your tax outgo with their Income Tax Calculator.
Vodafone Idea Shares Soar on UBS Upgrade, Despite Widening Losses
Background
Vodafone Idea Limited (NSE: IDEA) is a leading telecom operator in India, formed in 2018 through the merger of Vodafone India and Idea Cellular. The company has been facing intense competition from rivals Reliance Jio and Bharti Airtel, leading to financial challenges.
UBS Upgrade and Share Price Rise
On Friday, April 22, 2023, Vodafone Idea's shares rose over four percent on the National Stock Exchange (NSE) after global brokerage firm UBS upgraded its rating for the stock to "buy." UBS also raised its target price for Vodafone Idea shares to Rs 18, representing a potential 28 percent increase.
Analysts cited the company's recent announcement of a successful 5G spectrum auction bid and its plans to raise funds through a rights issue as reasons for the upgrade. The auction gives Vodafone Idea access to additional spectrum, which is crucial for providing 5G services.
Widening Losses
Despite the positive news from UBS, Vodafone Idea reported a widening of losses in the March quarter (Q4FY23). The company's total loss stood at Rs 7,231 crore, compared to Rs 4,883 crore in the same period last year. The increase was mainly attributed to higher interest and financing costs.
Analysts noted that Vodafone Idea's operating revenue declined slightly in Q4FY23, primarily due to lower voice and data usage. The company's average revenue per user (ARPU) also remained stagnant.
Top 5 FAQs
1. Why did UBS upgrade Vodafone Idea's rating? UBS cited the company's successful 5G spectrum auction bid and its plans to raise funds through a rights issue as reasons for the upgrade.
2. What is the target price for Vodafone Idea shares now? UBS has raised its target price for Vodafone Idea shares to Rs 18, representing a potential 28 percent increase.
3. Why did Vodafone Idea's losses widen in Q4FY23? The widening losses were primarily attributed to higher interest and financing costs.
4. What are Vodafone Idea's plans to address its financial challenges? The company has announced plans to raise funds through a rights issue and is exploring strategic partnerships to reduce its debt.
5. What is the outlook for Vodafone Idea's stock? Analysts are divided on the outlook for Vodafone Idea's stock. Some believe that the recent 5G spectrum auction bid and the company's plans to raise funds could lead to a turnaround, while others remain cautious due to the intense competition and the company's widening losses.
With the median price of a single-family home in California reaching a staggering $868,150 in September, the state's high home prices have created a wealth gap that disproportionately affects communities of color. According to the Legislative Analyst's Office, the cost of buying a mid-tier home has increased by 84% since January 2020, making it unaffordable for the majority of Californians. This poses serious challenges for low-income households and people of color who are already struggling to keep up with the state's high cost of living. As California grapples with mounting economic divides, the need for affordable housing solutions becomes more urgent. Help us address this pressing issue by joining our year-end campaign to raise $50,000 and support local reporting on important issues like this.
Zomato CEO, Deepinder Goyal, responds to user feedback on the company's "Food Rescue" initiative, showing his commitment towards innovation and open recruitment. The feature, launched on October 10, 2024, offers discounted meals from cancelled orders to customers within a 3km radius, aiming to reduce food wastage and provide affordable options. While there have been concerns raised about safety and fairness, Goyal points out the efforts to ensure proper packaging and limit the number of cancellations per month. The company is also exploring partnerships with food banks and charities to further reduce food wastage.
BTTV, a leading market news channel, introduces a new show called 'Daily Calls' aimed at providing viewers with expert insights and guidance on navigating the market. With access to live sessions featuring experienced analysts, the show aims to assist viewers in making informed investment decisions and building a strong portfolio. Don't miss out on this valuable opportunity to gain clarity and understanding in today's uncertain market.
Adani Group is under scrutiny for alleged violations of disclosure norms concerning a US bribery case and the subsequent cancellation of major deals by Kenya. While the conglomerate has denied any involvement in the case, stock exchanges have sought explanations and experts believe that the Securities and Exchange Board of India (SEBI) may launch an investigation. The allegations, which include a criminal indictment and a civil complaint, could have significant consequences for Adani Group's reputation and access to international markets.
Outlandish, an e-commerce startup, is opening a new brick-and-mortar store in Santa Monica's 3rd Street Promenade, featuring a first floor of branded stalls and a second floor for shopping. The store aims to mix live online selling with in-person retail, as visitors can watch influencers and sellers on livestreams and even join in themselves. The concept taps into the growing trend of live shopping in the US, with TikTok itself actively promoting and hosting events centered around live selling. This move by Outlandish is in line with TikTok's efforts to recreate the success of its Chinese sister app, Douyin, which drives billions in annual product sales.
The highly volatile Mad cryptocurrency has seen a massive surge of 67% in the last 24 hours, trading at $0.00006226 as of 02:49 a.m. EST. This sudden spike in price, along with a heavy overbought RSI level of 86, signals a potential correction or pullback in the near future. However, the Mad price has managed to break above both the 50-day and 200-day SMAs, indicating a strong and sustained bullish trend. The ADX value above 60 also confirms the strength of this rally. Stay updated on this exciting development by joining our Telegram channel.
In a note released on Friday, JPMorgan addressed concerns over potential credit risk for Indian banks heavily exposed to the Adani Group, following the recent indictment of its billionaire founder, Gautam Adani, in the US. While the charges have sparked a drop in shares of state-owned banks, JPMorgan analysts have deemed the banks' exposure "manageable," with their assessment showing a low risk of default from the Adani Group. However, global and local banks are expected to take a cautious approach in providing any new funding to the conglomerate, with potential for higher interest rates due to heightened risks.
In a state of the nation address, Kenya's President announced the cancellation of major deals with Indian tycoon Gautam Adani, including an airport expansion project and power transmission lines. This decision was made in light of U.S. bribery and fraud indictments against Adani, who has been charged with securities fraud and conspiracy. The controversial deals had faced backlash from Kenyan protesters and airport workers concerned about potential job losses. Despite claims from Kenya's Energy Minister that no corruption was involved on their part, the country has now severed ties with Adani's conglomerate.
X's new terms of service, which allow the company to use user data and hold users accountable for overusing the platform, are prompting long-time users, including celebrities like Gabrielle Union, to leave the popular microblogging platform. In response, many users are turning to Bluesky, a microblogging startup, with its U.S. mobile app downloads increasing by an estimated 651% since the start of November. Despite X and Meta's larger user bases, Bluesky's growth suggests many users are looking for alternatives to X's new terms.
Zomato’s new “Food Rescue” feature caught the attention of Bengaluru resident Bhanu who offered practical and thoughtful suggestions to CEO Deepinder Goyal. Impressed by his insights, Goyal extended an unexpected job offer to Bhanu, a product manager working for a startup. This positive exchange highlights the importance of hiring talented individuals who offer practical solutions to enhance a company’s operations. Zomato, known for handling over 4,00,000 cancelled orders per month, aims to prevent food wastage with their new feature, which offers discounted meals to customers within a 3km radius of a delivery partner with a cancelled order.