Vodafone Idea Share Price Target 2024, 2025: Up to 56% potential upside? Here's what brokerages say
vodafone idea share price target 2024: up to 56% potential upside? here's what brokerages say
Vodafone Idea Share Price Target 2024, 2025: Shares of Vodafone Idea (Vi) are in focus after the Aditya Birla Group and Vodafone Group joint joint venture announced tariff hikes. Will this tariff hike come as a relief to the troubled telco or will it start losing its market share?
Several brokerages and analysts have shared their opinions and analysis on the same. Of them, brokerage firm Citi is extremely bullish on the telecom stock as it sees up to 56 per cent potential upside in the stock.
Shares of Vodafone Idea on Monday, July 1, at 11:58 AM, traded at Rs 17.90 apiece on NSE, down 0.18 per cent against its previous closing price.
Vodafone Idea Tariff Hike
Vodafone Idea on Friday, June 28, launched new plans for its prepaid and postpaid customers, a day after both Reliance Jio and Airtel increased its tariff rates. The revised tariff plans will be effective from July 4. The telecom giant said that it aims to invest in launching 5G services.
“Vi is planning significant investments over the next few quarters to further enhance the 4G experience as well as launch of 5G services,” Vi added.
This is the first major rate increase by the telecom companies since 2021, a report by The Economic Times said.
Vodafone Idea Share Price Target 2024, 2025
Citi has upgraded Vodafone Idea from neutral to buy and also increased target price to Rs 23 from Rs 15 saying that the stars are now aligning for the troubled telecom operator.
While retaining high-risk rating, Citi said the target price could rise to Rs 28 in a bull case scenario, contingent on a favourable outcome in the AGR case that could result in a marked reduction in Vodafone Idea's dues.
"They (telcos) have not increased tariffs for about a couple of years in a row now and so that will do a world of good to the balance sheets of everybody. And most importantly to Vodafone Idea. I think the clear beneficiary of all this, it will benefit everybody, but incrementally I think it will be Vodafone Idea," market advisor Chakri Lokapriya said, as reported by The Economic Times.
"Vi has been under financial stress, and this tariff hike is likely to provide support in the near term. The company has announced lower hikes for entry-level plans, similar to Airtel; its daily data plans saw an average hike of 17-19% for popular plans. Vi has also guided to higher capex intensity in coming quarters, to enhance quality of 4G service as well as launch 5G," Emkay Global’s Sabri Hazarika said.
However, on the other hand HSBC said market share losses are likely to continue as its network investment lags those of peers. "Its recent capital raise should help to improve network coverage and capacity, and the pace of its market share losses should slow. However, we retain our Reduce rating given its rich valuation (16.9x FY26e EV/EBITDA). Reflecting the recent equity raise of Rs 240 billion and earlier tariff hikes, we lift our target price to Rs 7 from Rs 4," it said.
Vodafone Idea Share Price History
Shares of Vodafone Idea has rallied over 141 per cent in the past one year. In a shorter time frame, over the past month and the past three months, the telecom stock has delivered returns of 17.5 per cent and 28 per cent, respectively.