Indus Towers rallies 10%, hits over 2-year high; Vodafone Idea up 9%
In the past seven trading days, Indus Towers has surged 25 per cent post government announced reforms in the telecom sector.
Indus Towers’ stock rose 10% on the BSE in intra-day trade on Friday, reaching a two-year high of Rs 305.65. The tower infrastructure services provider’s stock was trading at its highest level since April of this year. It has risen 25% in the last seven trading days due to the government’s announcement of telecom reforms, which have boosted Vodafone Idea’s going concern visibility.
Meanwhile, Vodafone Idea’s shares rose 9% to Rs 11.58 in intraday trade on the BSE today, after rallying 30% in the previous seven trading days. In intra-day business on September 17, it reached a high of Rs 12.37.
According to brokerage YES Securities, these measures will enable Vodafone Idea to survive for at least the next four years, since the annual outgo of Rs 22,000 crore (Rs 14,000 spectrum dues and Rs 8,000 AGR dues) would be pushed back four years.
“To catch up with peers, Vodafone Idea needs to increase its CAPEX to improve network capacity and coverage. According to the brokerage business, the sector’s average revenue per user (ARPU) level is unsustainable, and a price hike is urgently needed to enhance Vodafone Idea’s operating cash flow.