Down 45% in 1 year! Vodafone IDEA shares earned as Citi upgrades to buy, see 67% potential upside | Einsmark news

Shares of Vodafone Idea advanced almost 4 percent during early trade on Monday, April 15, after the global brokerage Citi Research once again confirmed its positive attitude about the relevant telecommunications operator. The broker maintained his ‘buy’ rating on the stock, along with a target price of £ 12, which implies an upside potential of nearly 67 percent of the previous session of the previous session. In his latest note, Citi said he still considers Vodafone Idea (VI) to buy as a ‘high-risk head’, but is still optimistic about the company’s prospects, especially in light of the recent share conversion by the government. The telecommunications major recently announced that the government has converted spectrum fees worth £ 3,700 into equity, increasing the government’s shareholding in the company from 22.6 percent to 48.99 percent. Despite the fact that the government now holds almost half of the company, Vodafone idea has made it clear that operational control will remain with the promoters. The stock switch is seen as an important milestone for the telecommunications player, which was under severe financial pressure amid intense competition in the industry and falling user base. The credit rating agency, ICRA, recently upgraded the Vodafone IDEA’s credit rating from BB+. This upgrade applies to the company’s long -term banking facilities and is expected to facilitate its bank debt increase in the future. Vodafone IDEA has set out a roadmap to return to growth, including a £ 50,000-55,000 capital issue over the next three years. In its investor offer on April 9, the company reiterated that tariff increases and additions to subscribers are essential to grow revenue. The telecommunications firm emphasized that the growth of ARPU (average income per user) is critical, especially as the use of users has increased, while rates did not keep pace. The company emphasized that inflationary pressure and increasing consumption trends justify further tariff increases. Vodafone ideal also pointed out that consumers have already shown their ability to take up higher rates, which pave the way for future hikes aimed at improving profitability and enabling sustained investments in infrastructure. However, analysts have warned that the company’s turnover for the quarter quarter could fall on a consecutive basis, largely due to continuing losses of subscribers. In contrast, the most important competitor Bharti Airtel is expected to provide revenue profits, strengthening the pressure on the vodafone idea to arrest the competitiveness of the network and increase the network. Inventory performance The stock climbed to 3.5 percent intraday to £ 7.43 on April 15. Despite the Uptick, it remains significantly below the peak of £ 19.15 of 52 weeks, which was touched in June 2024-a drop of more than 61 percent. The stock hit its 52 -week low of £ 6.60 in November last year. Over the past twelve months, Vodafone idea has eradicated nearly 45 percent of investors’ wealth. However, April has seen a modest recovery, with the script that has so far risen 7.5 percent after two consecutive months of losses. It fell by 10 percent in March and 16.5 percent in February, although January was a 14 percent rally. The reaffirmation of Citi from a ‘buy’ rating and the upgrading of the ICRA credit rating apparently brought the investor sentiment around Vodafone, which provides some relief for a share of prolonged operating and financial battle. Although there are risks, especially around the retention of subscribers and revenue repair, recent developments, including stock switching, proposed Capeex and tariff plans on a roadmap for revival. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions. First published: 15 Apr 2025, 12:24 pm Ist