⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
IDEA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | IDEA | Market Cap | 1,02,384 Cr. | Current Price | 9.45 ₹ | High / Low | 12.8 ₹ |
| Book Value | -7.58 ₹ | Dividend Yield | 0.00 % | ROCE | -2.07 % | ROE | % |
| Face Value | 10.0 ₹ | DMA 50 | 10.5 ₹ | DMA 200 | 9.71 ₹ | Chg in FII Hold | 0.00 % |
| Chg in DII Hold | 0.85 % | PAT Qtr | -6,406 Cr. | PAT Prev Qtr | -5,622 Cr. | RSI | 34.7 |
| MACD | -0.45 | Volume | 53,92,34,074 | Avg Vol 1Wk | 53,12,59,563 | Low price | 6.12 ₹ |
| High price | 12.8 ₹ | 52w Index | 49.8 % | Qtr Profit Var | 3.45 % | EPS | -2.64 ₹ |
| Industry PE | 37.3 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT remains negative (-6,406 Cr. vs -5,622 Cr.), showing continued losses. EPS at -2.64 ₹ reflects weak earnings.
- Margins & Returns: ROCE at -2.07% and ROE not meaningful due to negative equity, highlighting poor efficiency.
- Debt: Debt-to-equity not disclosed, but balance sheet stress is evident from negative book value (-7.58 ₹).
- Cash Flow: Persistent losses raise concerns about sustainability and liquidity.
💹 Valuation
- P/E Ratio: Not applicable due to negative earnings.
- P/B Ratio: Current Price 9.45 ₹ vs Book Value -7.58 ₹ → Negative book value indicates financial distress.
- PEG Ratio: Not meaningful due to losses.
- Intrinsic Value: Current price trades on speculative sentiment rather than fundamentals.
🏢 Business Model & Competitive Advantage
- Telecom operator with large subscriber base but struggling financially.
- Competitive disadvantage due to high debt and sustained losses.
- Survival depends on external support, restructuring, and industry dynamics.
📈 Technicals & Entry Zone
- RSI at 34.7 → Oversold territory, speculative accumulation possible.
- MACD negative (-0.45) → Weak momentum, short-term caution advised.
- Entry Zone: Speculative accumulation between 8–9 ₹.
- Long-Term Holding: Risky due to poor fundamentals; suitable only for high-risk investors.
✅ Positive
- DII holdings increased by 0.85%, showing some domestic institutional support.
- 52-week performance up 49.8%, reflecting speculative investor interest.
- Large subscriber base provides potential if financial restructuring succeeds.
⚠️ Limitation
- Persistent losses with negative EPS and book value.
- ROCE and ROE are negative, highlighting poor efficiency.
- Valuation metrics not meaningful due to financial distress.
📉 Company Negative News
- Quarterly losses widened to -6,406 Cr., showing continued financial stress.
- FII holdings remained stagnant, reflecting lack of foreign investor confidence.
📈 Company Positive News
- DII holdings increased by 0.85%, showing domestic institutional support.
- 52-week performance up nearly 50%, driven by speculative momentum.
🏭 Industry
- Industry PE at 37.3 suggests sector trades at healthy multiples.
- IDEA lags peers significantly due to losses and negative book value.
🔎 Conclusion
IDEA remains in financial distress with persistent losses, negative book value, and weak efficiency metrics. While speculative interest has driven price gains over the past year, fundamentals remain poor. Entry is favorable only for high-risk investors near 8–9 ₹, with long-term holding dependent on successful restructuring and industry support. Conservative investors should avoid due to high leverage and sustained losses.