Idea hits all high notes

Idea Cellular is currently the top gainer on the BSE, up almost 8% at Rs.125 but this is only after the stock hit a new 52-week high today at Rs.128.70. Volumes have more than doubled up to over 10 lakh shares and market cap stands at Rs.41,462 crore.

The stock has hit the high notes on the back of a very good performance for Q4FY13, exceeding most estimates. Sequentially, the company’s revenue rose 9% at Rs.6061 crore led by growth in network voice minutes. Net profit was up 35% at Rs.308 crore, given the overall better performance and its interest outgo too had come down. Its EBITDA margin rose by a healthy 119 bps at 27.6% (QoQ), Following this robust performance, most of the brokerage houses have now upgraded the stock, giving it a ‘buy’ call.