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Vodafone Idea share price plunges over 4% even as net loss narrows in Q1FY23; should you buy, sell, hold?

Vodafone Idea share price fell more than 4 per cent to Rs 8.71 apiece on BSE on Thursday

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Vodafone Idea's revenue from operations grew to Rs 10,410 crore in the quarter ended 30 June 2022

Vodafone Idea share price fell more than 4 per cent to Rs 8.71 apiece on BSE on Thursday a day after the telco reported marginal narrowing of its consolidated loss to Rs 7,296.7 crore for the June quarter. The company had posted Rs 7,319.1 crore loss in the corresponding period of previous year. In eight months, the stock has nearly halved from its 52-week high of 16.8 apiece. Technical analysts say that charts show nothing significant for Vodafone Idea; and no major pattern except that of a declining trend is visible. “The stock resisted yesterday to the 100-DMA which stands at 9.25. Major resistance in the form of 200-DMA is at 10.50,” Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services, told FinancialExpress.com.

Also read: Vodafone Idea Q1 losses narrow as tariff hikes boost realisation; Takkar elected chairman

Vaishnav advised investors to avoid this stock; and said to use any up move to make an exit and find a better opportunity elsewhere. In traded volume terms, more than 11 crore shares have traded on National Stock Exchange, and a total of  1.35 crore scrips exchanged hands on the BSE, so far in the trade. It may be noted that Idea Cellular and Vodafone Plc had completed the merger of their India operations in 2018.

Q1FY23 earnings of Vodafone Idea were slightly better than expectations with improvement in ARPU but still remains an extremely over leveraged company capable of moving in a downward spiral, AR Ramachandran, Co-founder & Trainer, Tips2Trades told FinancialExpress.com. Ramachandran added that investors should buy near 8-8.4 which remains a strong support zone if Vodafone Idea share doesn’t close above 9.6 on the daily charts,” he added. Vodafone Idea had acquired spectrum worth Rs 18,799 crore in the just-concluded auction.

Also read: Well-prepared to launch 5G services on time: Telcos

Vodafone Idea’s revenue from operations grew to Rs 10,410 crore in the quarter ended 30 June 2022, improving nearly 14 per cent on-year. The Average Revenue Per User or ARPU stood at Rs 128 per subscriber for the quarter compared to Rs 104 in Q1FY22. During the April-June quarter of the fiscal, the company’s EBITDA margin dropped sequentially to 41.6 per cent from 45.6 per cent in the March 2022 quarter.

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