Can the decline in Vodafone Idea shares for some time stop? Can we see a huge rise in Vi’s shares? This possibility has been expressed by Japanese brokerage firm Nomura India. Let us know the special things of the report..
Nomura says that the pace of subscriber decline may slow down in FY 2026 and Vodafone Idea may gradually return to the growth path by FY 2027. This growth will be based on investments being made in increasing 4G cover and 5G rollout. Nomura expects Vodafone Idea’s operating profit or EBITDA to grow at an annual rate of 14 percent between financial years 2024-27. However, the financial health and future growth of the company will depend on debt funding.
Brokerage firm Nomura has given a buy rating on the company and has set its target price at ₹ 14. This indicates 90 percent upside compared to the current price.
Vodafone Idea will begin 5G rollout in key regions by the fourth quarter of FY25 (Q4FY25). The company aims to increase 4G cover to Rs 120 crore by FY25E. The company is planning to spend around ₹50,000-55,000 crore in the next three years. However, Nomura has cut EBITDA estimates for FY25 by 3 per cent and trimmed it to 5%/4% for FY26/FY27.
Vodafone Idea had increased the tariff in July 2024, due to which BSNL had to suffer subscriber loss. However, this trend is reversing from August 2024. Management says the full impact of the tariff hike will be visible in the coming two quarters.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.