Vodafone Idea Hits Lower Circuit Today – Here's Why
The company’s shares have delivered a return of around 25 per cent to its shareholders in the past 1 year.
The shares of financially struggling telecom company Vodafone Idea hit the lower circuit today during the morning session of the last day of the current weekly trading session. The decline in the company's share price is primarily attributed to concerns expressed by Goldman Sachs regarding the telecom sector. Along with Vodafone Idea, Indus Towers also experienced a drop in its share price today. The shares of Vodafone Idea fell 10 per cent and hit the lower circuit after a brokerage firm maintained its sell rating on the stock, with a slightly increased price target from Rs 2.2 per share to Rs 2.5 per share. Goldman Sachs, in its report, indicated that the company faces challenges in achieving a free cash flow breakeven and recovering market share.
Vodafone Idea is Mid-Cap company and one of the leading telecom service providers in India, the company is involved in mobility and long-distance services, as well as the trading of handsets and data cards.
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For Indus Towers, Goldman Sachs downgraded its rating from Neutral to Sell, although it raised the target price to Rs 350 from Rs 220. However, for Bharti Airtel, Goldman Sachs significantly raised its target price to Rs 1,700 from the previous Rs 900, indicating a 10% upside from the stock’s current market price. They have also maintained their buy rating.
The shares of Vodafone Idea are trading at around Rs 13.28 per share on the BSE. The company’s current market capitalization stands at Rs 90.346.79 crore. Additionally, the shares have delivered a return of around 25 per cent in the past 1 month.
As per the Quarterly Results, in the Q1 FY25, Vodafone Idea recorded a revenue of Rs 10,508 crore compared to Rs 10,656 crore representing a de-growth. The operating profit stood at Rs 4,205 crore compared to Rs 4,156. The net loss stood at Rs 6,432 crore compared to a loss of Rs 7,840 crore.
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Disclaimer: The article is for informational purposes only and not investment advice.