A day after Vodafone Idea Limited shares fell 20 per cent, several brokerages have revised their targets. In a major setback to Vodafone Idea Limited (VIL), the Supreme Court on Thursday rejected its demand for recalculation of AGR dues. The curative petition filed by Vodafone Idea and other telecom companies sought reconsideration of the 2019 decision, which was rejected by the Supreme Court.
Vodafone needs to do three things
Some brokerages had earlier suggested that Vodafone needs to do three things. Capital investment, tariff hike and loan waiver. If these three things are done then the company can revive again. The first two conditions have been fulfilled, but the company got a setback in the third case.
After this decision of the Supreme Court, Nuwama Institutional Equities said
Now after this decision of the Supreme Court, Nuwama Institutional Equities has said, “The adverse decision of the Supreme Court is a big setback for Vodafone. However, the share price has fallen sharply by 20 percent. Now Vodafone will have to reduce its losses by making its tariff plans more expensive.
The brokerage said that the first target was Rs 16.50
The brokerage said that earlier it had given a target of Rs 16.50 and now this target is Rs 11.50 and on this the stock can be held. UBS has suggested a target price of Vodafone Idea between Rs 12 and Rs 24. The brokerage believes that the possibility of equity conversion or delay in payment cannot be ruled out.