Trending stocks: Vodafone Idea shares slump 13%

NEW DELHI: Shares of Vodafone Idea traded 13.34 per cent down in Tuesday's trade. Around 51,919,354 shares changed hands on the counter.

Traders locked in gains after the stock saw a spectacular 129 per cent rally over the previous 10 sessions. The surge was triggered by reports that search engine giant Google was eyeing a 5 per cent stake in the company.

Vodafone Idea, however, clarified on May 29 that it was constantly evaluating various opportunities but there was no proposal before the board of the firm as yet.


“The earlier valuations were baking in the real possibility of the company going belly up. Market then realized that the company would survive, albeit in a weakened financial position,” said Ajay Bodke, CEO- PMS Prabhudas Lilladher.

“The current upmove started on reports of Google eyeing a stake in the telecom major. What we are seeing today is profit booking,” he added.

The scrip opened at Rs 12.49 and touched an intraday high and low of Rs 12.49 and Rs 9.41, respectively, in the session so far. Shares of the company of Vodafone Idea Ltd. quoted a 52-week high of Rs 13.54 and a 52-week low of Rs 2.61.

Total market cap of the Vodafone Idea Ltd. stood at Rs 27499.77 crore at the time of writing this report.

Key Financials
The company reported consolidated sales of Rs 11089.4 crore for the quarter ended 31-Dec-2019, up 2.26 per cent from previous quarter's Rs 10844.0 crore and up 5.63 per cent from the year-ago quarter's Rs 11751.6 crore.

The net loss for latest quarter stood at Rs 6438.8 crore, up 28.66 per cent from the same quarter a year ago.

Shareholding pattern
As of 31-Mar-2020, domestic institutional investors held 4.52 per cent stake in the company, while foreign institutional investors held 8.82 per cent and the promoters 18.48 per cent.

Valuation ratio
According to BSE data, the stock traded at a price-to-earnings multiple of -0.41 and a price-to-book ratio of 0.14. A higher P/E ratio shows investors are willing to pay a higher price because of better future growth expectations. Price-to-book value indicates the inherent value of a company and is the measure of the price that investors are ready to pay even for no growth in the business.

Vodafone Idea Ltd. belongs to the Telecommunications - Service industry.