Vodafone Idea Ltd share: Shares of debt-ridden telecom company Vodafone Idea Ltd are in focus these days. Last Friday, it fell by more than 14% and reached an intraday low of Rs 12.91. However, its closing price was Rs 13.36. Now analysts will keep an eye on this stock on Monday. Let us tell you that global brokerage firm Goldman Sachs has recommended a ‘sell’ rating on Vodafone Idea Ltd and has given a target price of Rs 2.5. However, this is not the lowest price target for Vodafone Idea. Deutsche Bank has set a target price of ₹ 1.5 per share on the counter.
What is the brokerage opinion?
Brokerage firm Goldman Sachs has written in its note that Vodafone Idea’s (VIL) recent capital-raise is positive, but it is not enough to stop the decline in its market share. The brokerage company has actually predicted a three percent loss in market share for the company in the next three-four years. For this, a direct relationship between capital expenditure and revenue market share has been cited. The company’s own assessment is that its capital expenditure will be 50 percent compared to competitors. Goldman Sachs said, “The recent capital raised by Vodafone Idea, although incrementally positive, is not enough in our view to stop the company’s market share loss.” Apart from this, it said that Vodafone Idea also has the matter of large adjusted gross revenue (AGR) / spectrum related payments starting from FY 2025-26.
Condition of the company’s shares
The company’s shares are witnessing a continuous decline. It has fallen by 15% in a month and 25% so far this year. However, this stock has climbed up by 28% in the last one year and 162% in five years. In the year 2015, the price of this stock was Rs 118. That is, compared to the current price, it has fallen by 90% so far. Its 52-week high price is Rs 19.15 and 52-week low price is Rs 10.31. The company’s market cap is Rs 90,686.19 crore. The government has 16,13,31,84,899 shares of Voda Idea.
(With agency input)
Disclaimer: The information given here is based on the brokerage firm. Investing in the stock market is subject to risk and please consult your advisor before investing.
