IDEA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 2.4

📊 Core Financials Breakdown

Profitability

ROCE: -2.07% and EPS: ₹-3.60 — negative returns and earnings indicate ongoing losses.

PAT Qtr: ₹-6,709 Cr., slightly improved from ₹-7,269 Cr. — still deeply in the red, with a 3.67% quarterly loss contraction.

Book Value: ₹-9.78 — negative, reflecting accumulated losses and erosion of shareholder equity.

Debt & Leverage

Debt-to-equity ratio not disclosed, but historically high due to spectrum liabilities and operational debt.

Government of India now owns ~49% equity post debt-to-equity conversion, offering some structural support

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Dividend Yield: 0.00% — no payouts, as expected for a loss-making company.

Institutional Sentiment

FII holding dropped sharply (-4.12%), DII also declined (-0.76%) — signaling reduced institutional confidence.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio Not applicable Negative earnings prevent meaningful valuation.

P/B Ratio Not meaningful Negative book value distorts asset-based pricing.

PEG Ratio Not available Earnings volatility makes PEG unreliable.

Intrinsic Value ~₹6.50–₹7.00 (est.) Current price of ₹7.84 is slightly above fair value.

🧠 Business Model & Competitive Edge

Core Operations: Vodafone Idea Ltd. (Vi) is a telecom operator offering mobile and fixed services across India.

Strengths

Large subscriber base (~198 million), strong brand recall, and extensive retail footprint

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Strategic partnerships with global content providers and digital expansion via Vi app.

Spectrum holdings and infrastructure positioned for 4G-to-5G migration

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Challenges

Ongoing AGR liabilities and legal disputes with DoT over ₹9,450 Cr. demand

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Negative net worth, persistent losses, and declining institutional interest.

RSI at 63.1 — nearing overbought territory, MACD at 0.27 — weak bullish momentum.

📈 Entry Zone & Technicals

DMA 50: ₹7.12, DMA 200: ₹7.94 — price is hovering near long-term average.

RSI: 63.1 — approaching overbought.

MACD: 0.27 — mild bullish crossover.

📌 Entry Zone: ₹6.50–₹7.20 — speculative entry for high-risk investors.

🕰️ Long-Term Holding Guidance

2025 Target: ₹7.00–₹8.40

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2030 Target: ₹11.00–₹18.00

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Holding Strategy: IDEA is a speculative turnaround play with high volatility and deep structural challenges. Suitable only for high-risk investors betting on government support, strategic capital infusion, and 5G monetization. Accumulate cautiously and monitor legal and financial developments closely.

You can explore Vi’s September 2025 Investor Presentation

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and review expert price forecasts

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for deeper insights.

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www.myvi.in

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www.goodreturns.in

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moneymintidea.com

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