Citi has maintained a “Buy” rating on Vodafone Idea, setting a target price of ₹22 per share, following the Supreme Court’s decision to hear the telecom operator’s curative petition regarding Adjusted Gross Revenue (AGR) dues. This move is seen as a significant development, as the matter has been pending for a long time.
A favorable outcome from the Supreme Court could substantially alleviate Vodafone Idea’s AGR debt burden, with potential benefits estimated at ₹4-5 per share, or even more, translating to over a 25% increase from the current stock price. Citi’s current target does not account for any reduction in the company’s AGR liabilities.
The developments surrounding Vodafone Idea may also have positive implications for Indus Towers, given its connection to the telecom sector.
After the brokerage’s call, Vodafone Idea’s stock showed positive momentum, opening at ₹16.40 and reaching a high of ₹16.50, with a current trading price of ₹16.26, reflecting a gain of 1.82%. The stock’s previous close was ₹15.97.
