Goldman Sachs cuts Vodafone Idea target; recommends sell as estimated downside over 70%

Goldman Sachs has cut its target on Vodafone Idea from Rs 2.60 to Rs 2.50 per share and recommended a Sell on this stock, a view also echoed by technical analyst Nilesh Jain.

The Vodafone Idea shares were trading at Rs 8.40 on the NSE and were down nearly 2 per cent on Friday after the company’s September quarter results failed to impress the street. The company reported a net loss of Rs 7,595.50 crore for the July-September which was up 4 per cent sequentially.

The company showed growth on many other key metrics include revenue, EBITDA, ARPU and 4G subscriber base.

Technical View  

Analyst Nilesh Jain sees a further downside in this stock citing a weak chart structure in the stock. He expects prices to fall between Rs 8 and Rs 7.50. He suggested a Sell on rise strategy in Vi shares.  

Around 12:50 pm 4.44 crore shares were trading around this time.  The total market cap of the company is Rs 26,97,9.83 crore.

This was fifth consecutive quarter of revenue and 4G subscriber growth, the company said in its filing to the exchanges. The net debt stood at Rs 220,130 crore comprising of deferred spectrum payment obligations of Rs. 1,366.5 billion (including Rs. 172.6 billion towards spectrum acquired in recent spectrum auction) and AGR liability of Rs. 685.9 billion that are due to the Government, and debt from banks and financial institutions of Rs. 150.8 billion. Cash & cash equivalents were Rs. 1.9 billion with that net debt stood at Rs. 2,201.3 billion.

"We continue to focus on expanding our high speed broadband network coverage and capacity. We also continue to refarm 2G/3G spectrum to expand our 4G coverage and capacity as well as upgrade our core and transmission network. We have shut down ~19,000 3G sites during the quarter while we added 8,500 4G sites. Our overall broadband site count stood at 444,228 as of September 30, 2022," the company claimed in its quarterly earnings exchange filings.

Source: NSE

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