Macquarie has maintained a ‘Neutral’ rating on Vodafone Idea with a target price of ₹7 per share, implying limited upside from the current market price of ₹6.80. The brokerage raised concerns over the company’s ability to meet its financial obligations organically, citing inadequate free cash flow (FCF) generation. As a result, Macquarie reiterated the risk of significant additional equity dilution, particularly impacting minority shareholders.
The brokerage referred to the recent developments as merely a “bandage,” not a long-term solution to Vodafone Idea’s capital and operational challenges.
In its broader telecom outlook, Macquarie noted that while Indus Towers has gained some temporary relief with key tenant Vodafone Idea receiving support, it does not foresee a notable improvement in tenancy growth.
For industry peers Bharti Airtel and Reliance Jio, the brokerage continues to expect industry-wide tariff hikes, which it believes will drive a more constructive trajectory for earnings, cash flow, and returns.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.
