Shares of Aditya Birla Group’s telecom company Idea Cellular Ltd dropped more than 5% to a 7-year low in the mid-morning trades on Thursday two days after the telecom firm said that its net loss grew over three-fold on a yearly basis. Shares of Idea Cellular Ltd extended losses after opening flat on the bourses today morning. The stock of Idea Cellular shed as much as 5.13% to a 7-year bottom of Rs 63.8 on BSE on Thursday. The stock of Idea Cellular on Thursday hit the lowest level since 27 May 2011. Amid the sharp drop in the share prices of Idea Cellular shares, heavy trading volumes were seen. As at 2:35 pm, more than 1.7 crore equity shares exchanged hands on both NSE and BSE with about 1.63 crore equity shares on NSE alone.
The stock of Idea Cellular has broken below a support of Rs 66, the 38.2 Fibonacci projection level of the downtrend from a high on 17 April 2015 to a low on 9 November 2016, Reuters said in a report. This suggests stock will now move towards the next support at Rs 49.8, the 50% projection level. Idea Cellular shares are on a strong downtrend with Trend Intensity (TI) indicator showing a reading of 36, MACD is also negative and below its signal line, Reuters added. Further, in the last one month, analysts have cut Idea Cellular‘s FY 2019 net profit estimates by 11.4%, Reuters reported citing TR Eikon data.
Earlier last week on Saturday, Idea Cellular net loss widened to Rs 962.2 crore for the fourth-quarter ended 31 March 2018 as against to a net loss of Rs 327.70 crore in the comparable quarter last year. While, on the other hand, Idea Cellular’s total income saw a drop of 22% to Rs 6,387.7 crore in the January-March period versus a net income of Rs 8,194.5 crore in the same quarter a year earlier. With the sixth straight quarter of losses, Idea Cellular‘s ARPU declined to Rs 105 from Rs 114 on a quarterly basis.