This multibagger Birla Group stock is trading below Rs 20: The company is likely to raise funds and reported the highest EBITDA in the last 11 quarters!

Over the past year, the stock has delivered nothing short of a multibagger return, with an impressive 132.86 per cent surge.

Vodafone Idea Limited informed stakeholders about an upcoming board meeting scheduled for February 27, 2024. The purpose of the meeting is to discuss and evaluate proposals for raising funds through various means.

In the board meeting evaluate any and all proposals for raising of funds in one or more tranches by way of various financial instruments.

Amid this announcement, Vodafone Idea Ltd soared by 6.06 per cent to Rs 16.3 with market capitalisation of Rs 79,406 crore. Turning our attention to the stock performance over the past year, the stock has delivered nothing short of a multibagger return, with an impressive 132.86 per cent surge.

Financial Performance

The board approved Quarterly Results of quarter ending December 31, 2023, showing consecutive growth in Average Revenue Per User (ARPU) for ten quarters, with Q3FY24 ARPU reaching Rs. 145. Revenue stood at Rs. 10,670 crores, and EBITDA reached Rs. 2,140 crores, the highest in the last 11 quarters. An exceptional item of Rs. 760 crore reflects excess payment towards administrative spectrum price. Capital expenditure for the quarter amounted to Rs. 330 crores, with gross debt at Rs. 21,496 crores.

Strategic Initiatives

Vi has implemented a focused investment approach, including network upgrades and spectrum refarming, to enhance its infrastructure. This has resulted in improved network coverage in Ayodhya, with increased capacity and backhaul connectivity. The company is at an advanced stage of trials for Open RAN and is embracing new technologies like virtual RAN for the rollout of 5G services. Additionally, Vi has transformed its business services from a traditional Telco to a TechCo, offering Rich Business Messaging for Android devices. Strategic partnerships have been formed to drive digital revenue streams, including integrated utility bill payment on the Vi app, along with a collaboration with Job Hai to strengthen its job proposition.

Marketing Initiatives

Vi has launched a brand campaign titled 'Be Someone’s We' with the aim of fostering emotional affinity among consumers. The company has also introduced 'Choose Your Benefit' on Vi Max postpaid plans, allowing customers to customize their plans based on individual needs. Vi's efforts have been reflected in improved customer ratings on the Play Store for its app, along with a reduction in overall customer complaints and an increase in digital customer service requests.

Partnerships and Offerings

In a bid to enhance customer offerings, Vi has partnered with Amazon to provide bundled propositions on prepaid plans and has integrated TV apps for Vi Movies & TV. Additionally, Vi has entered into gaming partnerships to provide added value to its subscribers.

Outlook and Future Plans

Looking ahead, Vi anticipates a moderation in subscriber declines following recent tariff interventions. The company is gearing up to meet impending payment obligations, with FY25 payables including spectrum and bank debt, and FY26 government payables estimated at Rs. 27,000-28,000 crores.

Disclaimer: The article is for informational purposes only and not investment advice.