“Idea Cellular Limited (ICL) is a part of Aditya Birla Group and has operating history since 1995. ICL is the 3rd largest operator (Revenue-wise) in the country. The Company is an integrated GSM operator and has Pan-India presence. The Company holds the leadership position in Kerala, Madhya Pradesh, Maharashtra & Uttar Pradesh (W) circles in terms of Revenue Market Share. The Company had recently acquired 3G spectrum for 11 circles, these circles are the Company’s primary sources of revenues and accounted for more than three-fourth of the overall revenues. ICL had rolled-out 3G services during Q1 FY12.....
“Idea Cellular Limited (ICL) is a part of Aditya Birla Group and has operating history since 1995. ICL is the 3rd largest operator (Revenue-wise) in the country. The Company is an integrated GSM operator and has Pan-India presence. The Company holds the leadership position in Kerala, Madhya Pradesh, Maharashtra & Uttar Pradesh (W) circles in terms of Revenue Market Share. The Company had recently acquired 3G spectrum for 11 circles, these circles are the Company’s primary sources of revenues and accounted for more than three-fourth of the overall revenues. ICL had rolled-out 3G services during Q1 FY12.”
“ICL has been putting efforts for improving its brand recognition with novel and aggressive advertising campaigns, strategic brand promotions and product innovations the effects of which is showcased in constant improvement in various parameters. ICL has constantly been increasing its market share in the net additions of the wireless subscribers over the last five quarters. During Q1 FY12, ICL managed to acquire 14.0% of the net additions to the wireless subscribers as compared to 9.9% during Q1 FY11. Moreover, ICL has most benefited from Mobile Number Portability (MNP) which was launched in January 2011. According to data released by the telecom ministry about 13 mn subscribers had switched their operators till the end of June 2011 citing network and tariff issues. ICL gained 0.82 mn subscribers though MNP, highest in comparison to all the competitors. ICL also registered the lowest port-out ratio of 58 customers for every 100 customers porting in amongst the incumbents. Furthermore, the recently commenced Visitor Location Register (VLR) reporting by Telecom Regulatory Authority of India (TRAI) suggests that ICL has been ranked top in terms of active subscribers. According to data released by TRAI, over 92.0% of ICL’s subscribers are active. The amount and efforts incurred on aggressive marketing and advertising strategy has gradually been paying off as the Company manages to strengthen the brand ‘Idea'.”
“ICL started the first quarter of FY 2012 with strong top-line growth and robust performance at the EBITDA level. The Company has constantly been increasing its market share of the net additions of subscribers. Idea now stands at the 4th position in terms of subscriber base and 3rd in terms of revenue market share. Idea has evolved as strong brand over the past couple of years. The rising popularity of the brand has resulted into improved key performance indicators such as net adds market share, percentage of active subscribers and has also benefited from mobile number portability. Moreover, focus on rural markets builds volume visibility for the future. ICL currently trades at EV/EBITDA multiple of 11.6x on FY11 EBITDA of Rs.37,907 mn and 7.1x on FY13E EBITDA of Rs.62,104 mn. We recommend investors to BUY the stock at current levels of Rs.101 for initial target price of Rs.126,” says Sushil Finance research report.
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“Idea Cellular Limited (ICL) is a part of Aditya Birla Group and has operating history since 1995. ICL is the 3rd largest operator (Revenue-wise) in the country. The Company is an integrated GSM operator and has Pan-India presence. The Company holds the leadership position in Kerala, Madhya Pradesh, Maharashtra & Uttar Pradesh (W) circles in terms of Revenue Market Share. The Company had recently acquired 3G spectrum for 11 circles, these circles are the Company’s primary sources of revenues and accounted for more than three-fourth of the overall revenues. ICL had rolled-out 3G services during Q1 FY12.”
“ICL has been putting efforts for improving its brand recognition with novel and aggressive advertising campaigns, strategic brand promotions and product innovations the effects of which is showcased in constant improvement in various parameters. ICL has constantly been increasing its market share in the net additions of the wireless subscribers over the last five quarters. During Q1 FY12, ICL managed to acquire 14.0% of the net additions to the wireless subscribers as compared to 9.9% during Q1 FY11. Moreover, ICL has most benefited from Mobile Number Portability (MNP) which was launched in January 2011. According to data released by the telecom ministry about 13 mn subscribers had switched their operators till the end of June 2011 citing network and tariff issues. ICL gained 0.82 mn subscribers though MNP, highest in comparison to all the competitors. ICL also registered the lowest port-out ratio of 58 customers for every 100 customers porting in amongst the incumbents. Furthermore, the recently commenced Visitor Location Register (VLR) reporting by Telecom Regulatory Authority of India (TRAI) suggests that ICL has been ranked top in terms of active subscribers. According to data released by TRAI, over 92.0% of ICL’s subscribers are active. The amount and efforts incurred on aggressive marketing and advertising strategy has gradually been paying off as the Company manages to strengthen the brand ‘Idea'.”
“ICL started the first quarter of FY 2012 with strong top-line growth and robust performance at the EBITDA level. The Company has constantly been increasing its market share of the net additions of subscribers. Idea now stands at the 4th position in terms of subscriber base and 3rd in terms of revenue market share. Idea has evolved as strong brand over the past couple of years. The rising popularity of the brand has resulted into improved key performance indicators such as net adds market share, percentage of active subscribers and has also benefited from mobile number portability. Moreover, focus on rural markets builds volume visibility for the future. ICL currently trades at EV/EBITDA multiple of 11.6x on FY11 EBITDA of Rs.37,907 mn and 7.1x on FY13E EBITDA of Rs.62,104 mn. We recommend investors to BUY the stock at current levels of Rs.101 for initial target price of Rs.126,” says Sushil Finance research report.
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