IDEA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.4
| Stock Code | IDEA | Market Cap | 1,10,727 Cr. | Current Price | 10.2 ₹ | High / Low | 12.8 ₹ |
| Book Value | -7.58 ₹ | Dividend Yield | 0.00 % | ROCE | -2.07 % | ROE | % |
| Face Value | 10.0 ₹ | DMA 50 | 9.76 ₹ | DMA 200 | 9.61 ₹ | Chg in FII Hold | -0.43 % |
| Chg in DII Hold | 0.60 % | PAT Qtr | -6,406 Cr. | PAT Prev Qtr | -5,622 Cr. | RSI | 64.4 |
| MACD | 0.14 | Volume | 43,40,76,419 | Avg Vol 1Wk | 55,66,10,029 | Low price | 6.12 ₹ |
| High price | 12.8 ₹ | 52w Index | 61.4 % | Qtr Profit Var | 3.45 % | EPS | -2.64 ₹ |
| Industry PE | 41.0 |
📊 Financials: IDEA shows extremely weak fundamentals with negative ROCE (-2.07%) and negative book value (-₹7.58). EPS is negative (-₹2.64), reflecting persistent losses. Quarterly PAT worsened (-₹6,406 Cr vs -₹5,622 Cr), highlighting ongoing financial stress. Cash flows remain under pressure due to high debt and operational inefficiencies.
💹 Valuation: Valuation cannot be meaningfully assessed due to negative earnings. P/E is not applicable, PEG ratio unavailable, and intrinsic value remains uncertain. Dividend yield is 0.00%, offering no income support. Book value is negative, further weakening fundamentals.
🏢 Business Model & Advantage: IDEA operates in telecom, a highly competitive sector dominated by stronger peers. Limited competitive advantage due to weak financials, declining subscriber base, and heavy debt burden. Reliance on tariff hikes and external funding for survival.
📈 Entry Zone: Speculative entry only near ₹8–₹9 with strict stop-loss. Current price (₹10.2) is above DMA 200 (₹9.61), but resistance lies at ₹12.8. Risk remains high due to negative fundamentals.
⏳ Long-Term Holding: Not suitable for long-term investors until profitability improves. Only speculative short-term trades possible with strict risk management.
Positive
- Large market cap (₹1,10,727 Cr) provides scale
- DII holdings increased (+0.60%)
- RSI at 64.4 indicates moderate momentum
Limitation
- Negative ROCE (-2.07%) and EPS (-₹2.64)
- Persistent losses with worsening PAT (-₹6,406 Cr)
- Negative book value (-₹7.58)
- No dividend yield
Company Negative News
- Consistent losses and weak financial health
- FII holdings decreased (-0.43%), showing reduced foreign confidence
Company Positive News
- DII inflows (+0.60%) reflect selective domestic support
- Speculative momentum supported by high trading volumes
Industry
- Telecom industry PE ~41.0, but IDEA cannot be compared due to negative earnings
- Sector dominated by stronger peers with healthier balance sheets
Conclusion
IDEA remains a high-risk speculative stock with weak fundamentals, negative book value, and persistent losses. Entry is only suitable for short-term traders near ₹8–₹9 with strict stop-loss. Long-term holding is not advisable until profitability and financial stability improve significantly.