Sat Sep 21 09:01:48 UTC 2024: ## Vodafone Idea Stock Plunges After Supreme Court Ruling on AGR Dues
**New Delhi:** Shares of Vodafone Idea Ltd (VIL) plummeted by 22.15% on Thursday, hitting a one-year low of Rs 10.05 after the Supreme Court dismissed petitions filed by telecom companies, including VIL, to re-compute adjusted gross revenue (AGR) dues.
The stock, which had already lost 38.14% year-to-date, closed the day trading at Rs 10.51, down 18.59%. This decline came after VIL reported an AGR liability of approximately Rs 70,300 crore, including accumulated interest, a figure significantly higher than its self-assessed liability of Rs 35,400 crore.
Heavy trading activity was observed on the counter, with over 22.40 crore shares changing hands on BSE, significantly exceeding the two-week average volume of 4.79 crore shares.
Multiple analysts expressed concerns about the stock’s future prospects, citing a breakdown on daily charts and a potential further decline in the near term. Akshay Bhagwat, Senior Vice-President, Derivatives Research at JM Financial Services, recommended an exit strategy, stating that the stock is unlikely to perform well in the medium to long term.
Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One, noted that the stock’s short-term outlook appears disruptive, with potential support levels near Rs 10-9.50.
Similarly, Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, expects the stock to slip towards Rs 8, with resistance expected at Rs 12.
The stock currently trades below all major moving averages and its 14-day relative strength index (RSI) stands at 19.01, indicating an oversold position.
The company’s financial performance also remains a concern, with a negative price-to-equity (P/E) ratio of 3.01 and a negative price-to-book (P/B) value of (-)0.87.
Promoters currently hold a 37.17% stake in the telco.
First Piper 