In April 2015, Vodafone Idea’s stock was trading at Rs. 118, but since then it has significantly decreased in value and is currently trading at Rs. 7 as of May 2023. Unfortunately, Vi stock has not been a profitable investment for its investors. However, many are still interested in the stock and are seeking a price prediction to make informed investment decisions.
According to our analysis, we predict that Vodafone Idea’s share price target for 2023 is Rs. 10. However, if you are looking for target prices for 2024 onwards up to 2050 and the reasoning behind them, you can scroll down and read the analysis presented by the team at sharekingz.com. After reading this article, you will have a comprehensive understanding of the topic and any lingering questions should be answered.
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About Vodafone Idea
Vodafone Idea or Vi is an Indian mobile network operator. It was formed in August 2018 as a result of the merger between Vodafone India and Idea Cellular. The primary goal of the merger was to create a stronger entity that could better compete with its rivals, such as Reliance Jio and Bharti Airtel.
As of January 31st, 2023, Vi has a subscriber base of 239 million, making it the third-largest mobile telecommunications network in India and the tenth-largest mobile telecommunications network in the world. The new entity was officially established on August 31st, 2018, under the name Vodafone Idea. In 2020, the company rebranded as Vi after Vodafone and Idea merged their brands.
The Indian government issued an order to Vodafone Idea on February 3rd, 2023, requiring the company to convert its interest dues, valued at 161.33 billion Indian Rupees ($1.96 billion), into equity at a rate of 10 rupees per share. As a result of this order, the government became the largest single shareholder in the company. This could be a game changing move for the company as the company was struggling with the due of AGR.
Vodafone Idea Stock Fundamental Analysis
Data As of 4th September 2023
Current Market Price | Rs. 10 |
Market Cap | Rs. 48,680 Crore |
P/E Ratio | – |
EPS | -7.78 |
52 Week High | Rs. 10.4 |
52 Week Low | Rs. 5.70 |
Book Value | – Rs. 15.3 |
Dividend Yield | 0.00% |
ROCE | – |
ROE | – |
Promoters Holding | 50.36% |
FIIs Holding | 2.29% |
DIIs Holding | 0.73% |
Public Holding | 13.44% |
Government Holding | 33.18% |
![Vodafone idea company profit and loss](https://sharekingz.com/wp-content/uploads/2023/09/vodafone-idea-stock-profit-loss-1024x411.webp)
When examining the sales figures of Vodafone Idea, there appears to be no cause for excessive concern, as the company is consistently generating operating profits. However, the primary issue lies in the substantial debt burden that the company is carrying, with interest payments on this debt negatively impacting the company’s financial health.
Vodafone Idea Stock Positive Points
- Over the past five years, the Company has consistently maintained an impressive average operating margin of 28.55%.
- The company’s promoters hold a significant stake of 50.36%.
- The Indian government is providing assistance to prevent the company from going bankrupt.
Vodafone Idea Stock Negative Points
- The company’s return on equity (ROE) has been negative at -67.35% and return on capital employed (ROCE) has been negative at -18.74% for the last 3 years.
- Company’s book value and P/E are negative.
- Vi has huge debt in its book.
- Reliance Jio and Bharti Airtel are giving tough competition to the company.
- Vi’s network quality is getting poorer day-by-day which is leading to decreasing subscriber count almost every quarter.
Vodafone Idea Share Price Target 2023 to 2050
Considering the current market conditions and Vodafone Idea’s future growth prospects, we predict that the Vi stock price will gradually recover from its current levels and reach approximately Rs. 10 by the end of 2023. We anticipate that over the next decade, Vi’s market position will strengthen, and the company’s revenue will grow at a healthy rate.
Although the company is currently facing challenges, the Indian government is making efforts to improve its situation. The government aims to have at least three private players in the telecom market to promote healthy competition. Therefore, we believe that the company may recover better from its current position.
Looking towards 2050, we expect Vodafone Idea to maintain a significant presence in the Indian telecom market. As 5G technology becomes more prevalent, Vi will have opportunities to expand its business further and offer innovative services to its customers. With these factors in mind, we have determined the following target prices for Vi’s shares:
![Vodafone Idea Share Price Target 2023](https://sharekingz.com/wp-content/uploads/2023/05/vodafone-idea-share-price-target-1024x1024.webp)
Year | Vodafone Idea Stock Target Price |
2023 | |
2024 | Rs. 15 |
2025 | Rs. 21 |
2026 | Rs. 23 |
2027 | Rs. 27 |
2028 | Rs. 29 |
2029 | Rs. 33 |
2030 | Rs. 39 |
2031 | Rs. 45 |
2032 | Rs. 54 |
2033 | Rs. 61 |
2034 | Rs. 70 |
2035 | Rs. 81 |
2036 | Rs. 93 |
2037 | Rs. 107 |
2038 | Rs. 123 |
2039 | Rs. 141 |
2040 | Rs. 162 |
2041 | Rs. 187 |
2042 | Rs. 215 |
2043 | Rs. 247 |
2044 | Rs. 284 |
2045 | Rs. 327 |
2046 | Rs. 376 |
2047 | Rs. 432 |
2048 | Rs. 497 |
2049 | Rs. 571 |
2050 | Rs. 657 |
It should be noted that the target price we have provided is based on our predictions for the future and is subject to change. It is important to understand that nothing is guaranteed in the stock market. Our analysis and predictions are intended for educational purposes only and should not be taken as a recommendation for trading or investing.
Additionally, the target price we have mentioned does not take into account any potential future adjustments in the Vodafone Idea share price, such as bonuses or stock splits.
Factors Affecting Vodafone Idea Share Price Target
Investing in Vodafone Idea is a risky move due to the numerous challenges the company is facing, such as tough competition from Bharti Airtel and Reliance Jio, increasing debt, declining subscriber base, and decreasing margins.
If the company does not handle these obstacles effectively, it could go bankrupt. As a result, only daring investors should consider investing in Vodafone Idea, while more cautious investors may want to look for safer stocks. To overcome these challenges, the company needs sufficient capital to improve the network’s quality, add more users, increase its revenue, and boost its ARPU (Average Revenue Per User) which is currently Rs. 135. Furthermore, the company must quickly reduce its debt to reinvest the amount going into interest payments in the business.
These factors will influence the share price going forward, and it will be intriguing to see how the company bounces back from its current predicament. While the situation is challenging, there is one positive sign: the support of the Central Government. If this support continues, we may witness further developments in the future.
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FAQs Related to Vi (Vodafone Idea) Share Price Target
What is the prediction of Vodafone Idea share?
As per our prediction, Vodafone Idea share could reach Rs. 10 by the end of 2023, Rs. 17 by 2025, Rs. 36 by 2030, and Rs. 657 by 2050. But, it is a very risky share to invest in.
What will be the future of Vodafone Idea share?
The future of Vi’s share is expected to be highly volatile due to the company’s unpredictable future. It could either make or break, as both outcomes are possible at the moment.
Conclusion
In conclusion, it is not advisable to blindly follow the share price target for Vodafone Idea stock as it is a highly risky investment. Investing all your funds in this stock with the expectation of significant returns may lead to losses due to the unpredictable nature of the stock market. Hence, it is important to invest according to your risk tolerance and seek advice from a financial advisor before making any investment decisions.
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