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This article is more than 1 year old.

Vodafone Idea down 10% as CLSA retains 'sell' call on stock

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Vodafone Idea's shares plunged over 10 percent intraday on Tuesday after brokerage firm CLSA retained 'sell' call on the stock.

Vodafone Idea down 10% as CLSA retains 'sell' call on stock
Vodafone Idea's shares plunged over 10 percent intraday on Tuesday after brokerage firm CLSA retained 'sell' call on the stock.
At 9:48 am, the shares were trading 9.62 percent or 0.75 points lower to Rs 7.05 per share on the NSE, while on an intraday basis the stock price plunged 10.25 percent to Rs 6.90.
CLSA in its report explained that the telecom company's key concern is its market loss. Gearing will be out of control at 5.9x despite an earnings before interest, taxes, depreciation, and amortization (Ebitda) jump of 67 percent by FY22, it said.
The brokerage also added that the company will find it difficult to fund a hefty annual spectrum payment of Rs 16,000 crore despite a 40 percent tariff hike by FY22.
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CLSA retained 'sell' call on Vodafone Idea but raised the target price to Rs 6.50 per share from Rs 5.50 earlier.
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