IDEA - Investment Analysis

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

Investment Rating: 1.2

📉 Fundamental Analysis of Vodafone Idea Ltd (IDEA)

⚠️ Major Concerns

Severe Financial Distress

PAT Qtr: -₹7,166 Cr, EPS: -₹3.84 — deep and persistent losses

Book Value: -₹9.85 — negative net worth, signals insolvency risk

ROCE: -1.87%, ROE: Not Reported — no return on capital or equity

No Valuation Anchors

No P/E, No PEG, No Dividend Yield — lacks investment-grade metrics

Debt-to-Equity: Not disclosed, but known to be extremely high

Institutional Exit

FII Hold ↓ 4.12%, DII Hold ↓ 0.76% — major investors pulling out

Technical Weakness

Price below DMA 200: ₹8.35, hovering near DMA 50: ₹7.27

RSI: 45.9, MACD: 0.04 — neutral, no strong momentum

52W Index: 8.77% — severe underperformance

🚫 Not a Good Candidate for Long-Term Investment

Vodafone Idea is not suitable for long-term investment due to

Negative net worth and unsustainable losses

No visibility on profitability or debt resolution

High risk of equity dilution or restructuring

This is a speculative turnaround play, not a fundamental investment.

📉 Ideal Entry Price Zone (Only for Speculators)

Entry Zone: ₹6.30–₹6.80

Near 52-week low, but only for high-risk traders

Not recommended for long-term investors

🧭 Exit Strategy (If Already Holding)

Immediate Exit Recommended for long-term investors

If held due to legacy reasons, consider exiting near ₹8–₹9 if price rebounds

Avoid averaging down — risk of permanent capital loss

Hold Only If

Government relief package materializes

Promoters infuse significant equity

Debt restructuring and ARPU growth become visible

Would you like to explore stronger telecom or digital infrastructure plays like Bharti Airtel, Jio Financial, or Tejas Networks for long-term exposure?

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