Vodafone Idea Stock Bounces Back Despite Weak Subscriber Data: A 27% Decline Over 3 Months

On Thursday, Vodafone Idea’s share price exhibited a notable recovery, climbing more than 1% from its earlier lows. The telecom stock opened at ₹6.99 on the Bombay Stock Exchange (BSE) after closing at ₹6.93 the previous day. Despite dipping to an intraday low of ₹6.93, it rebounded to reach a high of ₹7.05, marking an increase of 1.73%. This upward movement comes as the company faces ongoing selling pressure that has plagued its stock in recent months.

Recent Performance Overview

Vodafone Idea’s shares have experienced significant volatility, with a staggering 27% decline over the past three months and a 13% drop year-to-date. Over the last year, the stock has plummeted by 45%, although it has managed to provide impressive returns of 67% over a five-year period.

3-Month Decline: 27%
Year-to-Date Drop: 13%
1-Year Decline: 45%
5-Year Return: 67%

Subscriber Challenges Highlighted

The recent uptick in Vodafone Idea’s share price coincides with the release of subscriber data from the Telecom Regulatory Authority of India (TRAI) for March. The report revealed that Vodafone Idea faced considerable challenges, losing 5.41 lakh subscribers that month, bringing its total mobile user base down to 20.53 crore.

In stark contrast, market leader Reliance Jio gained 21.74 lakh new users, elevating its subscriber total to 46.97 crore, while Bharti Airtel added 12.50 lakh subscribers, raising its count to 38.98 crore.

Wireless Subscriber Landscape

According to TRAI, the overall wireless subscriber base, which includes mobile, 5G, and fixed wireless access, grew from 1,160.33 million in February to 1,163.76 million in March, reflecting a modest monthly growth rate of 0.28%. Urban wireless subscriptions dipped slightly to 632.57 million, whereas rural subscriptions increased to 531.18 million.

Stock Highs and Lows

Vodafone Idea’s stock has seen substantial fluctuations, hitting a 52-week high of ₹19.15 on June 28, 2024, and a 52-week low of ₹6.60 on November 22, 2024. As of 12:35 PM, the share price traded at ₹6.95, reflecting a modest increase of 0.29% with a market capitalization exceeding ₹75,298 crore.

In summary, while Vodafone Idea shows signs of recovery, the company continues to grapple with subscriber losses and intense competition in the telecom sector. Investors will be watching closely to see how these dynamics evolve in the coming months.