Vodafone Idea share: After 74% surge in 6 months, KM Birla adds 5.96 crore shares—Is more upside left?

Vodafone Idea share: Shares of Vodafone Idea were trading at Rs 11.49 on Tuesday, up 0.087 per cent for the day. The stock opened at Rs 11.52 and touched an intraday high of Rs 11.65 and a low of Rs 11.42.

The company’s market capitalisation stood at Rs 1.25 lakh crore. The stock is trading close to its 52-week high of Rs 12.80. Its 52-week low stands at Rs 6.12.

In terms of returns, the stock has gained 1.68 per cent in the last five sessions and 2.13 per cent over the past one month. Over the last six months, however, the telecom stock has surged 74.09 per cent, reflecting renewed investor interest.

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Kumar Mangalam Birla raises stake

Chairman Kumar Mangalam Birla bought 5.96 crore shares in the company between January 30 and February 3.
The purchases were made as follows:

January 30: 2.21 crore shares

February 1: 1.88 crore shares

February 2: 45 lakh shares

February 3: 1.42 crore shares

Following these transactions, Birla now holds a 0.06 per cent stake in Vodafone Idea.

The stake increase comes at a time when the stock has been witnessing improved delivery volumes. Delivery volume rose to 31 per cent, marking a four-month high. Higher delivery volumes are often seen as a sign of stronger conviction buying.

Subscriber loss trend improves

Operationally, Vodafone Idea’s subscriber loss trend has shown signs of moderation.

December: Subscriber loss of 9.40 lakh; decline rate at 0.47 per cent

November: Subscriber loss of 10.11 lakh; decline rate at 0.50 per cent

October: Subscriber loss of 20.83 lakh; decline rate at 1.03 per cent

The slowing pace of subscriber decline suggests stabilisation in the company’s user base, which is critical for revenue visibility.

Brokerage upgrade and turnaround hopes

Brokerage Emkay Global Financial Services recently upgraded the stock from ‘Sell’ to ‘Add’ and raised the target price to Rs 12 from Rs 6 earlier.

The upgrade follows relief measures from the government in the form of a moratorium, which is expected to provide significant cash flow support. Analysts believe the relief could reduce the net present value of the company’s regulatory burden by 60–80 per cent.
Additionally, a reassessment and potential reduction in AGR dues could act as an upside trigger for the stock.