Vodafone IDE limited stock prices added more than 3 percent in morning trade on November 24, a day after telecommunications service providers decided to climb the tariff.

The idea of ​​Vodafone (VI) will climb the tariff plan for prepaid users of 20-25 percent and an increase in interest rates will be effective November 25, the company said in the exchange of exchanges.

“New plans will begin the ARPU process (average income per user) improvement and help overcome financial stress faced by industry,” said the broadcast.

VI said new tariff plans will also help continue “improve the fastest cellular network of India”.

“VI remains committed to playing its role in accelerating the realization of the Indian Digital Vision of the Government. In line with its commitment to provide its products that are simple and comfortable, VI has measured the optimal range of planned features for sound and data,” he added.

VI is the second company to climb in recent days. On November 22, Airtel announced that it was a hiking rate of 20-25 percent for prepaid users.

In the submission of BSE, Airtel said the level of prepaid tariff would increase by 20-25 percent from November 26. Prices are in line with the ARPU at Rs 200 and in the end at the RS 300, “so that it provides a reasonable return that makes it possible for a financially healthy business model”, he added.

“We also believe that this ARPU level will enable large investments needed in the network and spectrum and more importantly provide an elbow airtel to launch 5G in India,” he said.

Domestic Research and Broking Firm Motilal Oswal has a neutral call in Stock VI with the target Rs 9.30 per share. This is the view that the increase in telecommunications company tariff serves 70 percent of its income pond (not including postpaid and B2B business), thus offering additional income / EBITDA of Rs 5,500 Crore / Rs 3,800 Crore (2QFY22 annual), which is a 14 percent / 68 percent increase .

The increase must increase the ARPU to Rs 128 against Rs 109 at this time. High operation leverage, given the low EBITDA margins that existed only 17 percent of 49 percent of Bharti Airtel, must encourage higher growth compared to the 24 percent increase in airtel in EBITDA, he added.

On the other hand, CLSA has a “poor performance” call in stock, with a target at Rs 11 per share. It feels like the latest tariff increase can increase its income by 10 percent, adding that the increase in entry rates can increase revenue by 7 percent.

Stock traded at Rs 10.94, up RS 0.36, or 3.40 percent, at 10:21 a.m. It has touched the highest intraday Rs 11.14 and Low intraday Rs 10.53.