No 5G roadmap from Vodafone Idea; analysts mixed

Vodafone Idea Share Price BSE: Vodafone Idea shares traded flat on Wednesday, December 21. The stock opened at Rs 8.26 in green on BSE and later surrendered the gains to selling pressure, tacking the weak sentiment in the domestic equity market. At 12:16 AM, the stock quoted Rs 8.17, declining by nearly a per cent on BSE.

Brokerage firm Nomura has maintained a 'reduce' rating on Vodafone Idea with a target price of Rs 8.

Ravi Singhal, CEO of GCL, said that the stock is trading with all negative factors. If the government takes a stake, then the stock can be a turnaround from here. He recommended the stock for a target price of Rs 17 and keeping a stop loss of Rs 6.5.

Manoj Dalmia, founder and director, Proficient Equities, said that Vodafone Idea is yet to establish a 5G base station network in India due to financial difficulties. Since October 1st, when 5G services began to be offered in India, some 2,500 base stations are being installed weekly. On the other hand, the Center had instructed businesses to install 10,000 base stations each week.

"Given that it bought spectrum at the 5G auction in August, Vi's absence from the 5G network sector is puzzling. Although Airtel and Jio have been transparent about their roll-out strategies, little is known about Vi's objectives," he said.  

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"Investors can explore other telecom-related alternatives instead of purchasing this stock," he added.

Vodafone Idea Share Price NSE

Vodafone Idea has delivered a negative return of around 4 per cent in the last 6 months. YTD, Vodafone Idea has yielded a negative return of 47 per cent. Putting into perspective, Vodafone Idea share which was available for Rs 15.55 apiece on January 3, is now available at around Rs 8.25.

At current levels, the stock has a market cap of Rs 26.18 thousand crore.

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