Shares of Vodafone Idea Ltd. and Indus Towers Ltd. are among the worst performing stocks on the Nifty 500 index on Wednesday, March 12. While shares of Indus Towers are down 7%, those of Vodafone Idea are down 6%.
Recent developments saw peers of Vodafone Idea, Jio Platforms and Bharti Airtel announcing tie-ups with Elon Musk’s SpaceX to bring Starlink services to India.
In response, shares of Reliance Industries are continuing their rebound from their recent lows. Bharti Airtel shares had opened higher but have now turned negative.
Starlink is an advanced internet systems that enables video and internet services at the most remote locations. Starlink uses Low-Earth Orbit satellite network to provide internet access to its users. This is different from traditional networks that either rely on towers or underground cables for network.
Additionally, based on the recently released telecom data, Vodafone Idea’s subscriber base narrowed by another 1.71 million users during the month of December to 207.25 million. This was higher than the 1.5 million subscribers it lost in November.
Vodafone Idea’s market share also fell to 18.01% from 18.19% earlier.
Last month, brokerage firm Motilal Oswal had written in a note that the stabilisation of subscriber losses is the single-most important factor for Vodafone Idea’s survival over the long-term.
Vodafone Idea is embarking on a significant capex cycle over the next two to three years to bridge the network gap with peers. “However, we believe that Vodafone Idea’s capex plans are contingent on a debt raise and further relief from the government,” Motilal Oswal said in its note.
Out of the 21 analysts covering Vodafone Idea, 12 of them have a “sell” rating on the stock, while four have a “buy” recommendation. The rest, say “hold.”
For Indus Towers, 13 out of the 24 analysts have a “buy” rating on the stock, while five have a “sell” rating.
Shares of Vodafone Idea are now below the mark of ₹7 after Wednesday’s 6% fall. The stock is now down 64% from its 2024 peak.
Shares of Indus Towers are down 6.7% at ₹318.45. The stock is down 31% from its recent peak of ₹460.
Top-notch SEBI registered research analyst
Best SEBI registered Intraday tips provider
Telegram | Facebook | Instagram
Call: +91 9624421555 / +91 9624461555
