Reiterate 'buy' on Idea Cellular - TP Rs.130 - Geojit BNP Paribas Financial Services

- The company reported an operationally strong quarter with ARPU rebounding to Rs.158, which is 6.8% up qoq.

- Strong data volume growth of 40% for 6 months.

- Strong active subscriber growth of 2.9 million against 0.6 million in 2Q.

- 3Q revenue beat market estimates but EBITDA missed streets estimates due to higher advertisement spending.

- Idea is well positioned to benefit from improving sector outlook. Competitive intensity is waning with some operators shutting/ reducing operations. It also seems that regulatory clarity is improving with equitable regulatory costs. It appears that the industry would be able to pass on higher costs (to subscribers)

- The industry has taken positive steps such as raising voice and data tariff, lowering distribution spends etc.

Source : Equity Bulls

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