Telecom players including Vodafone Idea and Bharti Airtel are buzzing on Dalal Street in today's trade after the Supreme Court slammed mobile carriers for non-payment of billions of dollars in government dues and threatened them with contempt proceedings if they didn't pay up by March 17.
The move threatens the survival of Vodafone Idea, a joint venture of Britain's Vodafone Group Plc and India's Idea Cellular, as the unit is saddled with about $3.9 billion in overdue payments.
As a result, Vodafone Idea shares tanked after the ruling. The company had lost about 27 per cent of its value this year at Thursday's close after falling 73 per cent in 2019. Market capitalisation of the company has tanked to around Rs 10,700 crore from Rs 74,928, hit on April 16, 2015.
Emkay Global Financial Services recently retained ‘Buy’ call on Airtel with a target price Rs 591.
“Bharti continues to remain on a strong footing with improving operating performance and recent equity fund raise will also ease the pain of AGR penalty. We believe Bharti’s subscriber market share gains with a higher proportion of post-paid subscribers provides revenue stickiness,” the brokerage said on February 5.
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