IDEA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 1.3

Vodafone Idea (IDEA) presents a complex investment picture — rich in scale but deep in financial distress. Here’s a high-resolution snapshot of its fundamentals and strategic outlook.

🧾 Core Financials Analysis

Profitability & Returns

EPS: -₹3.84, PAT: -₹7,166 Cr — bleeding heavily each quarter

ROCE: -1.87%, ROE: not reported — negative returns, poor capital efficiency

Book Value: -₹9.85 — shows net liabilities outpace assets, deeply insolvent

Dividend Yield: 0% — no payouts, no expectation in near term

Quarterly PAT Decline

Loss widened from -₹6,609 Cr to -₹7,166 Cr — worsening fundamentals

Profit variation: only +6.63%, likely due to cost restructuring or exceptional items

Debt Metrics: Debt-to-Equity not stated, but clearly extremely high, affecting viability

📊 Valuation Snapshot

Metric Value Commentary

P/E Ratio Not applicable (Negative earnings) Cannot compute — consistent losses

PEG Ratio Not available No meaningful growth projections

Book Value -₹9.85 Heavily impaired — liabilities > assets

Industry PE 50.7 Sector is expensive, but IDEA isn’t comparable due to losses

⚠️ Valuation offers no investment clarity. Price driven more by speculation than financial merit.

🏢 Business Model & Health

Model: Telecom services in India — competing against giants like Jio and Airtel

Challenges

Weak spectrum investments and infrastructure

Burdened by AGR dues, spectrum liabilities, and operational losses

Poor customer growth and ARPU compared to peers

Institutional Sentiment

FII Change: -4.12%, DII: -0.76% — investors reducing exposure

52w Index: 8.77% — heavy underperformance

📉 Technicals & Price Action

Current Price: ₹7.19

RSI: 45.9 — nearing oversold, but no reversal signs

MACD: 0.04 — flat momentum, consolidation

Volume: Very high — speculative trades likely

Trading below 200-DMA (₹8.35) — bearish trend continuation

🎯 Investment Strategy

Entry Zone: Only suitable as a speculative trade below ₹7.00 ⚠️ Not recommended for long-term investors unless there's a dramatic debt restructuring or external bailout

Long-Term View

High risk due to unsustainable losses, poor asset quality, and weak fundamentals

Watch for government intervention or promoter equity infusion — could change sentiment but not fundamentals overnight

If you'd like, I can help model an aggressive turnaround scenario or compare peer valuations like Airtel or Reliance Jio's parent for context. Or we could map out red flags for risky stocks — IDEA would be a textbook case. Want to take that route next? 📉📘

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