CMP: ₹14.36
Vodafone Thought (Thought) reported inline efficiency for the quarter. Each, sequential income development and EBITDA margin have been as per expectation. It reported sequential decline in income of 0.4 per cent q-o-q, nonetheless, ARPU elevated by 2 per cent q-o-q to ₹ 145/month; whereas, subscriber base declined by 4.6 million q-o-q to 215.2 million.
4G addition was higher than anticipated for the quarter at 0.9mn QoQ. There was sequential enchancment in EBITDA margin (up 80 bps QoQ) led by lower in roaming value.
Internet debt elevated to ₹2.15 trillion in Q3FY24 vs ₹2.13 trillion as of Q2FY24. It continues to lose subscribers (primarily in 2G section) and that adversely impacts income development. The addition of 4G subscribers stays modest. It wants capital infusion for augmenting the capital expenditure to meet up with friends when it comes to 4G protection/capability. It has nonetheless not introduced any timeline with regard to 5G implementation.
We anticipate that 2G to 4G migration would proceed to drive ARPU development. We anticipate EBITDA Margin to enhance in close to time period led by continued deal with operational effectivity. We estimate income CAGR of three.6 per cent over FY23‐26 with common EBITDA margin of 41.8%.
We preserve our Promote ranking on the inventory with goal worth of ₹10/share primarily based on EV/EBITDA of 13.1x on FY26E.
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