Vodafone Idea Share News: The share price of Vodafone Idea was down about 10% as of 11:51 am today., trading at Rs. 13.60.
The stock of Vodafone Idea crashed more than 14% on Friday, reaching a low of Rs 12.91 a share on the Bombay Stock Exchange (BSE) following a prediction by international brokerage firm Goldman Sachs that the telecom company’s stock price might fall more than 83%.
Why is the VI share falling today?
Regarding Vodafone Idea, Goldman Sachs has kept its “Sell” rating in place and raised its target price by a small amount to Rs 2.50 per share from Rs 2.20.
Even with the modest rise in the target, the new estimate still shows a significant drop from the closing price on Thursday.
The latest capital increase of Vodafone Idea is a great development, but Goldman Sachs is pessimistic that it won’t be enough to stop the company’s continued loss of market share.
Goldman Sachs predicts that Vodafone Idea will lose an additional 300 basis points of market share over the next three to four years.
The brokerage further mentioned that to reach free cash flow neutrality, the business must greatly increase it’s Average Revenue Per User (ARPU) by Rs 200–270.
Things like adjusted gross revenue (AGR) and payments related to spectrum are putting a lot of financial burden on the firm right now, and they are expected to get much worse starting in FY26.
What Does Goldman Sachs Predict about Vodafone Idea Share Price?
Goldman Sachs predicted that free cash flow will continue to be negative through at least FY31, which would negatively affect investor mood even further.
Citi, on the other hand, has adopted a more upbeat stance, keeping its “Buy” rating and target price of Rs 22 per share.
Citi’s optimistic position stems from the possible positive outcome of Vodafone Idea’s AGR Curative case, which could considerably lessen the company’s AGR debt burden if the Supreme Court decides to hear it. According to Citi, such a cut may potentially add Rs 4-5 per share, which would significantly increase the stock’s value.
Vodafone Idea’s stock was down almost 10% at Rs13.60 as of 11:51 am.
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