Vodafone Idea Ltd. share price target

Q3FY17 revenue was down ~7% QoQ largely due to intense competition. Voice realization was down ~11% QoQ driven by (1) price cuts and 2) higher incoming minutes lowering blended realization. Volume growth was ~7% QoQ. Data volume growth slowed to ~1% QoQ (Q2: ~15%) driven by a 10% QoQ drop in data su..

ICICI Securities Ltd | Retail Equity Research Revenues came in lower at | 8662.7 crore vs. our estimate of | 8920.1 crore owing to data revenues being lower. Voice traffic growth of 7.3% QoQ to 209.8 billion minutes (I-direct estimate 197 billion minutes) was higher driven by huge incoming traffic from Jio. This led to a sharp decline in voice ARPM at 10.6% QoQ to 29.6 paisa. Hence, voice revenues were at | 6177.7 crore (down 3.9% QoQ). The impact of Jio launch was more prominent on the data segment given the...

ICICI Securities Ltd | Retail Equity Research Idea posted a 2.4% QoQ decline in the voice realisations to 32.8 paisa, which was slightly below our expectations of 33.0 paisa. The decline was, however, expected with regard to the huge competitive pressure seen in the quarter. Total minutes came in at 195.5 billion vs. our expectation of 194.7 billion owing to better-than-expected subscriber addition and higher volumes due to reduced tariffs in voice. Voice revenues came in at | 6431.1 crore, down 4.2% QoQ, vs....

Media reports have indicated that Idea and Vodafone are exploring opportunities for a possible merger. The merger could be a significant positive for both the players and the telecom industry, but regulatory hurdles could play the spoil sport. The merger will make the combined entity the number one player with a revenue market share of 42% significantly higher than Bharti Airtel. Apart from the market share gains there could be significant operational synergies which will improve the cash flow profile and capital efficiency of combined entity. The industry will see consolidation benefits of reduced competitive intensity, stable long-term realisations and significant improvement in capital efficiency.

Valuation: Phillip Capital downgraded target price to Rs 130 and maintain BUY recommendation

Idea clamped down on promotional offers resulting in an improvement in voice realised rate by 3.1% QoQ from 33.3 paisa in Q4FY16 to 34.3 paisa in Q1FY17. However, such a strategy has been weighing down on voice traffic, which fell 1.14% QoQ to 199.3 billion minutes vs. our expectations of 203.0 billion minutes leading to a subdued voice revenue growth of 0.6% QoQ to | 6715.8 crore..ICICI Securities Limited downgrade the stock to HOLD with a revised target price of | 100 on a DCF based methodology.

Trendlyne has 10 reports on IDEA updated in the last year from 3 brokers with an average target of Rs 118.3. Brokers have a rating for IDEA with 2 downgrades,3 price downgrades in past 6 months and 6 price downgrades in past 1 Year.

EBITDA margin down sharply 570bp/150bp on QoQ/YoY: Idea reported weak revenue growth (1.4% behind estimates) flat QoQ, up 7.9% YoY to INR 94.9b. This was the 1st quarter in the last more than 20 quarters, where Idea’s revenue growth was behind Bharti revenue growth of 2.7%/9.1% on QoQ/YoY basis, impacting market share. EBITDA grew by a meager 3.2% YoY, down 15% QoQ to INR INR30.7b on weak revenue growth couple with high network operating costs increase of 540bp/180bp on QoQ/ YoY. Motilal Oswal recommend Sell on the stock with price target of INR 90 based on 5.0x EV/EBITDA on FY18.

We had an interaction with CMD of Lakshmi Overseas Industries Ltd (LKIL), Mr. Balbir Singh Uppal. Incorporated in 1981, LKIL is in business of agro processing, grain marketing and electricity power generation. The company is primarily engaged in the handling, storage and transportation of food grains. During FY11-16, the company has passed through rough patch due to (1) Core focus on basmati rice (2) pricing pressure (3) Stressed balance-sheet. However, with the continuous effort of management by shifting focus on non-basmati products (incl. by-products), debt restructuring activities and various cost rationalizations, the company is now back on track. The favorable pricing scenario, low interest outgo and...

Karnataka Bank Limited (KBL), a leading 'A' Class Scheduled Commercial Bank in India, was incorporated on February 18th, 1924 at Mangaluru, a coastal town of Dakshina Kannada district in Karnataka State. The bank took shape in the aftermath of patriotic zeal that engulfed the nation during the freedom movement of 20th Century India. Over the years the Bank grew with the merger of Sringeri Sharada Bank Ltd., Chitradurga Bank Ltd. and Bank of Karnataka. With over 9 decades of experience at the forefront of providing professional banking services and quality customer service, KBL now has a national presence with a network of 725 branches spread across 21 states and 2 Union Territories. Today, KBL has...

Idea reported a 1.2% QoQ increase in total minutes on the network to 201.6 billion minutes, owing to lower-than-expected subscriber growth & MOU. Voice revenues came in at | 6674.0...

Voice realisations improved 4.7% qoq after six quarters of decline surprised positively Voice volume growth of 1.2% qoq was lower than our estimates Blended data realisations improved 2.7% qoq after four quarters of decline...