Analysts Weigh In: Should Investors Buy, Hold, or Book Profits?
The Vodafone Idea share price has made a remarkable comeback, crossing the ₹1 trillion market capitalization mark as the stock nears its 52-week high. On Thursday, shares of Vodafone Idea (Vi) traded around ₹9.60 on the NSE, reflecting strong investor optimism about the telecom major’s turnaround plans and improving financial stability.
The Vodafone Idea share rally follows positive momentum driven by improved subscriber retention, ongoing tariff hike expectations, and potential capital infusion from long-term investors.
Vodafone Idea Regains Momentum Amid Market Confidence
After years of struggling with debt and subscriber losses, Vodafone Idea share price has been gaining ground steadily since mid-2024. The stock has surged over 70% year-to-date, fueled by bullish sentiment in the telecom sector.
Business Standard reported that the company’s market capitalization once again touched ₹1 trillion, marking a significant milestone for the joint venture between Vodafone Group Plc and Aditya Birla Group. This recovery underscores the growing investor confidence in the company’s revival strategy.
The recent rally was also supported by a Supreme Court hearing related to the AGR (Adjusted Gross Revenue) dues, now adjourned to October 27, which investors believe could bring some clarity on the company’s financial obligations.
Performance Snapshot: Nearing 52-Week High
As of the latest market session, Vodafone Idea share price was just below its 52-week high of ₹10.47, according to market data from Business Today.
In the last six months, the stock has delivered a return of more than 40%, outperforming the BSE Telecom Index. The vi share price has been particularly volatile, reflecting both optimism around its fundraising efforts and concerns over competition from Reliance Jio and Bharti Airtel.
Despite being a penny stock by price definition, Vodafone Idea’s market capitalization now surpasses ₹1 trillion, highlighting its scale in the Indian telecom ecosystem.
What’s Driving the Rally?
Market experts attribute the Vodafone Idea share price surge to several key developments:
- Tariff Hike Expectations: The industry is expected to see a new round of tariff hikes by late 2025, which could significantly improve ARPU (Average Revenue Per User).
- Network Expansion: Vodafone Idea is reportedly accelerating its 4G and 5G infrastructure rollout, improving service quality in key circles.
- Debt Restructuring & Equity Plans: The company’s ongoing discussions with lenders and investors have boosted confidence about balance-sheet repair.
- Improving Subscriber Retention: August data showed narrower subscriber losses, an encouraging sign that the company’s customer base might stabilize.
According to Reuters data, Vodafone Idea now has a market cap of ₹968,586.8 crore, positioning it as one of India’s most valuable telecom entities despite ongoing challenges.
Analyst Views: Buy or Hold?
Analysts remain cautiously optimistic. Some brokerage firms recommend a “hold” rating on Vodafone Idea share, citing the need for sustainable revenue growth before major re-rating.
However, short-term traders have benefited from the recent 9% jump earlier this month, supported by optimism around AGR resolution and government support for telecom infrastructure.
“The risk-reward ratio is improving for long-term investors, especially if tariff hikes materialize and fundraising continues as planned,” said one market expert on Business Standard TV.
Outlook: Can Vodafone Idea Sustain Its Rally?
While the vi share price is trending upward, challenges remain. The company still carries massive debt and must continue investing heavily in network modernization to compete with Jio and Airtel.
Still, with improving cash flows, gradual tariff normalization, and strong promoter backing, analysts see Vodafone Idea’s share price maintaining positive traction in the coming quarters.
Investors are advised to monitor upcoming financial results and AGR case updates closely, as these factors could influence near-term volatility.
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