Citi has maintained a ‘Buy’ rating on Vodafone Idea but has cut the target price to ₹12 per share, reflecting near-term challenges while still indicating upside potential from the current levels.
The brokerage notes that management views the bank guarantee waiver announced in December 2024 as a sign of continued government support, which is crucial for the company’s long-term sustainability.
However, Citi highlights two key monitorables in the coming months:
- Clarity on debt raising and any potential relief on Adjusted Gross Revenue (AGR) dues.
- A ₹5,500 crore cash payment due to the government by March 10, which remains a near-term financial challenge.
Meanwhile, Vodafone Idea continues to accelerate its network investments, and the company expects to start seeing benefits from these upgrades from Q4FY24 onwards.
With government support, improving network quality, and potential financial relief, Citi remains cautiously optimistic on Vodafone Idea’s outlook, while keeping a close watch on its debt restructuring plans.
Disclaimer: The above article is for informational purposes only and does not constitute financial advice. Investors are advised to consult their financial advisors before making any investment decisions.