Vodafone Idea and Indus Towers fall up to 14% as Goldman Sachs remains bearish on both telco sector entities

Vodafone Idea and Indus Towers shares remained in focus in Friday's session after global brokerage Goldman Sachs maintained its bearish view on both stocks.

Shares of Vodafone Idea fell to day's low of Rs 12.91 per share, falling over 14 per cent, while last it traded at Rs 13.55, down over 10 per cent per share on the BSE. Similarly, Indus Towers also lost close to 7 per cent to day's low price of Rs 414.2 per share.

The drag comes as Goldman Sachs maintained sell on Voda and raised the target price to Rs 2.5 from Rs 2.2 earlier.

The brokerage said that the path to FCF break-even and market share recovery unclear. Also, it expects free cash flow or FCF to be negative at least until FY31. Also, it anticipates another 300 bps share loss for the company over the next 3-4 years.

Meanwhile, it  double downgraded the stock to sell from neutral, raising the target to Rs 350 from Rs 220, a potential decline of 21 per cent from the last close. The brokerage finds a disconnect between the company's fundamentals and valuations. Also, it sees Indus’ re-rating as overdone.