Vodafone Idea shares at risk of huge fall, brokerage said - price will come down to Rs 10
Vodafone Idea Limited (VIL) is facing huge financial difficulties. This telecom company was on the verge of sinking in February last year but the government intervened and saved it. Its shares have seen huge fluctuations. In the last one year, Voda's shares have given a return of more than 100 percent. But now a big fall is being feared in it.
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Shares of Vodafone Idea, facing heavy debt and a financial crisis, may thus fall heavily. Famed brokerage Macquarie has started the coverage of Vodafone Idea shares while giving it a target price of Rs 10. This means that Vodafone shares can dive by about 37 percent from the current price.
Famous global brokerage Macquarie says that Vodafone Idea is neck deep in debt. Voda has already lost a large part of its customers to Reliance Jio and Bharti Airtel. According to Macquarie, this trend is going to continue and Voda's subscriber base i.e. market share will decrease. Also, there is a risk of further equity sales in the company.
Vodafone Idea share has been lackluster for quite some time. Its stock closed at Rs 15.88, marginally rising 0.57 percent on Friday. Vodafone has given a negative return of 0.75 per cent in the last six months. However talking about the one year period, investors made a bumper profit of 104 per cent. Its one-year high was at Rs 19.18 and a low at Rs 7.50.
The rating on Sunil Mittal-led Bharti Airtel has been upgraded by Macquarie from 'Neutral' to 'Outperform'. It also increased the target price from Rs 1,280 to Rs 1,630 per share. On Friday, the stock of Airtel closed at Rs 1,485.90 with a gain of 0.96 percent. Now, it can rise by 11 percent as per Macquarie's target price. Strong earnings and deleveraging have been eyed by the brokerage for Airtel.
