Vodafone Idea shares will be on investors’ radar today after global brokerages issued mixed views on the stock following the company’s Q4FY25 earnings.
Macquarie maintained an Underperform call with a target price of ₹6.5 per share, compared to the current market price (CMP) of ₹6.91. The brokerage highlighted a soft Q4, which missed estimates due to continued subscriber erosion and a higher interest burden. It noted that the ongoing erosion of the company’s subscriber base highlights that there is no quick fix to its fundamental challenges. With the government already being the largest shareholder, Macquarie also flagged challenges to any further equity infusion by the government.
JP Morgan has a Neutral rating on Vodafone Idea with a target of ₹8 per share. The brokerage pointed out that Q4 was broadly in-line on both revenues and EBITDA. The company’s capex came in at ₹4,230 crore, higher than ₹3,210 crore in Q3, but below the estimated ₹5,000 crore. Vodafone Idea’s board has approved an equity fundraise of ₹20,000 crore, and the company remains in talks with banks to arrange a debt fundraise to support future capex and operations.
UBS reiterated a Buy call on Vodafone Idea with a target price of ₹12.10 per share. UBS noted that Q4 results fell short of expectations, with market share losses continuing. Revenue declined 1% quarter-on-quarter, while ARPU rose 0.6% QoQ to ₹164, versus an estimate of ₹167. EBITDA was 3% below estimates, while margins were in-line. The brokerage said it will continue to monitor the company’s progress on its fundraising plans, capex strategy, and 5G rollout in the coming quarters.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
