Vodafone Idea shares plunged by 10% on Thursday morning after global brokerage firm Goldman Sachs maintained its sell rating on the stock. The firm also revised its target price from ₹2.2 to ₹2.5, reflecting its concerns about the company’s future.
Goldman Sachs highlighted uncertainty regarding Vodafone Idea’s ability to reach free cash flow break-even and regain market share. The firm anticipates the company could lose another 300 basis points in market share over the next 3-4 years.
In a best-case scenario, which assumes a 65% reduction in adjusted gross revenue (AGR) dues and consistent tariff hikes, Goldman Sachs sees a potential value of ₹19 per share. However, with the stock hitting the lower circuit at ₹13.58 on the NSE, concerns about the company’s financial outlook remain significant.
