Stock To Buy: Mutlibagger Telecom Stock Jumps 9%, UBS Recommends Buy For TP Rs 18

Telecommunications sector company Vodafone Idea Ltd shares witnessed sharp rally of over 9% in trade today on BSE soon after UBS sought to upgrade Vodafone Idea shares to buy from previous neutral call. The analyst upgraded the target price of Vodafone Idea shares to 18 per share from Rs 13.10 per share. Current market price of Vodafone Idea Ltd shares on BSE is Rs 15.17 per share with intraday gain of 7.97%. Vodafone Idea stock surged 15.02% in last 1-week and gained 118.97% in last 1-year. More details below:

Vodafone Idea Share Performance: The 52-week high price of Vodafone Idea share on BSE is Rs 18.42 apiece (as on 01/01/2024) and 52-week low price is Rs 6.87 per share (as on 25/05/2023). The company has a market capitalisation of Rs 1,00,855.40 crore. The PE of UBS is -2.43 and ROE is 30.14. Vodafone Idea shares today opened at Rs 14.23 per share, hit day's high at Rs 15.68 per share, and day's low of Rs 14.23 per share. Vodafone Idea stock declined 13% in last 3-months, fell 10% year-to-date, soared 69% in last 2-years, and 77% in last 3-years.

UBS Valuations On Vodafone Idea: The global brokerage firm expects nearly 70 to 80% surge in the Vodafone Idea shares ahead and stated that the respite in the shape of AGR reduction by Supreme Court or equity conversion accompanies with government moratoriums, is highly possible give that the government's stated objective of ensuring three viable private telcos. "VIL is most leveraged to any such relief, yet the stock is trading at a similar 11 times FY26e EV/Ebitda as Airtel and Jio. We believe risk-reward is attractive going into any such announcement and upgrade to Buy," UBS said.

Assuming AGR dues are completely waived, our DCF value could increase to Rs 24 per share, against Rs 12 when there are no waivers," added UBS.

Vodafone Idea Dividend History: Vodafone Idea so far announced 4 dividends since Sept. 5, 2013. The company never declared any b onus share and conducted any stock split.

About: Vodafone Idea Limited is an Aditya Birla Group and Vodafone Group partnership. The Company provides pan India Voice and Data services across 2G, 3G and 4G platform, according to its official website.

Disclaimer:

The stock has been picked from the brokerage report of UBS. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.