Vodafone Idea Share Price Target 2024, 2025, 2026, 2027, 2030 Prediction
Vodafone Idea Ltd. is one of the leading telecommunications service providers in India, with over 270 million subscribers as of June 2023. The company was formed by the merger of Vodafone India and Idea Cellular in August 2018 and operates under the brand name Vi. In this article, let’s look at the Vodafone Idea Share Price Target for tomorrow, 2023, 2024, 2025, 2027, and 2030.
In this blog post, we will analyze the current situation of Vodafone Idea and its future prospects based on its past performance, financials, growth potential, and fundamental and technical analysis.
We will also provide our Vodafone Idea Share Price Target for the company for the short-term and long-term.
Consider reading: Yes Bank Share Price Target
Page Contents
Vodafone Idea Share Price Target 2024, 2025, 2026, 2027, 2030
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2024 | ₹15 | ₹20 | ₹18 |
| 2025 | ₹19 | ₹25 | ₹22 |
| 2026 | ₹23 | ₹31 | ₹27 |
| 2027 | ₹29 | ₹39 | ₹34 |
| 2028 | ₹37 | ₹49 | ₹43 |
| 2029 | ₹46 | ₹61 | ₹53 |
| 2030 | ₹57 | ₹76 | ₹67 |
| 2031 | ₹72 | ₹95 | ₹83 |
| 2032 | ₹89 | ₹119 | ₹104 |
Consider reading: Suzlon Share Price Target
Vodafone Idea Share Price Target 2024
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2024 | ₹15 | ₹20 | ₹18 |
In 2024, Vodafone’s share price targets are expected to vary from a minimum of ₹15 to a maximum of ₹20, with an average target set at ₹18.
Vodafone Idea Share Price Target 2025
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2025 | ₹19 | ₹25 | ₹22 |
In 2025, the Vodafone share price targets are anticipated to range from a minimum of ₹19 to a maximum of ₹25, with an average target of ₹22.
Vodafone Idea Share Price Target 2026
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2023 | ₹23 | ₹31 | ₹27 |
The Vodafone share price targets for 2023 are projected to range between a minimum of ₹23 and a maximum of ₹31, with an average target of ₹27.
Vodafone Idea Share Price Target 2030
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2030 | ₹57 | ₹76 | ₹67 |
For the year 2030, the Vodafone share price targets are projected to range from a minimum of ₹57 to a maximum of ₹76, with an average target of ₹67.
Consider reading: TTML Share Price Target
Vodafone Idea Share Price Today Live Chart and History
Vodafone Idea Share Financial Performance
Vodafone Idea was formed in August 2018 by the merger of Vodafone India and Idea Cellular, two of the largest telecom players in India. The merger was aimed at creating synergies, reducing costs, and enhancing the customer experience.
However, the merger also resulted in integration challenges, network disruptions, and customer churn.
A quick summary of Vodafone Idea’s recent financial performance:
- The company’s revenue declined from ₹421.4 billion in FY 2023 to ₹105.1 billion in Q4 FY 2023, a drop of 75%.
- The company’s net loss widened from ₹64.19 billion in Q4 FY 2023 to ₹73.8 billion in Q1 FY 2024.
- The company’s EBITDA margin also fell from 24.7% in FY 2023 to 18.9% in Q1 FY 2024.
- The company’s share price also plummeted from ₹10.1 in July 2022 to ₹7.55 in July 2023, a decline of 25%.
- The company’s market capitalization eroded from ₹490.9 billion in July 2022 to ₹367.5 billion in July 2023.
The table below summarizes the key financial ratios of Vodafone Idea for the past four quarters.
| Ratio | Q1 FY 2024 | Q4 FY 2023 | Q3 FY 2023 | Q2 FY 2023 |
|---|---|---|---|---|
| Revenue (in ₹ billion) | 92.7 | 105.1 | 108.9 | 114.8 |
| Net Loss (in ₹ billion) | -73.8 | -64.19 | -45.39 | -72 |
| EBITDA (in ₹ billion) | 17.5 | 26.25 | 29.6 | 41 |
| EBITDA Margin (%) | 18.9 | 25 | 27.2 | 35.7 |
| EPS (in ₹) | -1.74 | -1.52 | -1.07 | -1.7 |
| ROE (%) | -9.94 | -8.65 | -6.11 | -9.7 |
| ROCE (%) | -0.78 | -0.64 | -0.45 | -0.71 |
| Debt/Equity Ratio (x) | -3.79 | -3.81 | -4.05 | -4 |
Consider reading: BHEL Share Price Target
Current Situation of Vodafone Idea
Vodafone Idea is currently facing several challenges that are affecting its viability and sustainability.
- The company has a huge debt burden of ₹2.82 trillion as of March 2023, which includes deferred spectrum payments, adjusted gross revenue (AGR) dues, and other liabilities.
- The company has been struggling to raise funds from various sources, such as equity infusion, asset monetization, tariff hikes, and government support.
- The company has been losing subscribers and revenue market share to its rivals, especially Reliance Jio and Bharti Airtel, who have invested heavily in network expansion, technology upgradation, and customer acquisition.
- The company has been lagging behind its competitors in terms of 4G coverage, quality of service, average revenue per user (ARPU), and digital offerings.
- The company has been facing regulatory uncertainties and legal disputes over various issues, such as spectrum allocation, license fees, interconnection charges, and floor pricing.
The table below compares the key operational metrics of Vodafone Idea with its peers for the quarter ended June 2023.
| Metric | Vodafone Idea | Reliance Jio | Bharti Airtel |
|---|---|---|---|
| Subscriber Base (in million) | 257.6 | 440 | 352 |
| Revenue Market Share (%) | 23.5 | 38 | 31 |
| ARPU (in ₹) | 107 | 138 | 146 |
| 4G Coverage (%) | 92 | 99 | 97 |
| Data Usage per Subscriber (in GB) | 13.5 | 15.6 | 16.3 |
| Voice Usage per Subscriber (in minutes) | 669 | 823 | 1044 |
| Data Subscribers (in million) | 153.9 | 426.2 | 190.9 |
| Data Revenue (in ₹ billion) | 41.1 | 147.8 | 69.9 |
| Data Revenue as % of Total Revenue | 44.3 | 70.4 | 48.5 |
Consider reading: IRFC Share Price Target
Future Prospects for Vodafone Idea
Vodafone Idea has been taking various steps to improve its financial and operational performance and overcome its challenges:
- The company has been exploring various options to raise funds, such as selling its stake in Indus Towers, issuing equity shares, converting debt into equity, seeking a moratorium on spectrum payments and AGR dues, and approaching the government for relief measures.
- The company has been focusing on improving its network quality, customer experience, and digital offerings, by investing in network modernization, spectrum refarming, network optimization, and digital platforms.
- The company has been targeting high-value customers and segments, such as postpaid, enterprise, broadband, and rural markets, by offering differentiated products, services, and plans.
- The company has been rationalizing its costs and optimizing its capital expenditure, by exiting unprofitable circles, shutting down 3G networks, outsourcing non-core activities, and leveraging synergies from the merger.
The table below shows the projected financials of Vodafone Idea for the next 10 years, based on certain assumptions and scenarios.
| Year | Revenue (in ₹ billion) | EBITDA (in ₹ billion) | EBITDA Margin (%) | Net Loss (in ₹ billion) | EPS (in ₹) | Debt/Equity Ratio (x) |
|---|---|---|---|---|---|---|
| 2024 | 420 | 90 | 21.4 | -60 | -1.41 | -3.5 |
| 2025 | 450 | 100 | 22.2 | -50 | -1.18 | -3 |
| 2026 | 480 | 110 | 22.9 | -40 | -0.94 | -2.5 |
| 2027 | 510 | 120 | 23.5 | -30 | -0.71 | -2 |
| 2028 | 540 | 130 | 24.1 | -20 | -0.47 | -1.5 |
| 2029 | 570 | 140 | 24.6 | -10 | -0.24 | -1 |
| 2030 | 600 | 150 | 25.0 | 0 | -0 | -0.5 |
| 2031 | 630 | 160 | 25.4 | +10 | -0.24 | -0 |
| 2032 | 660 | 170 | 25.8 | +20 | -0.47 | -0 |
| 2033 | 690 | 180 | 26.1 | +30 | -0.71 | -0 |
Assumptions:
- Revenue growth rate of 7% per year
- EBITDA margin improvement of 0.8% per year
- Net loss reduction of ₹10 billion per year
- EPS improvement of ₹0.23 per year
- Debt/Equity ratio reduction of 0.5x per year
Scenarios:
- Base case: The company manages to raise funds, improve network quality, retain customers, increase ARPU, and reduce costs as planned.
- Optimistic case: The company raises more funds than expected, gains market share, increases ARPU significantly, and reduces costs substantially.
- Pessimistic case: The company fails to raise funds, loses market share, faces regulatory hurdles, lowers ARPU, and incurs higher costs.
Fundamental Analysis of Vodafone Idea Share Price
Vodafone Idea’s share price has declined by 13.3% year-to-date (YTD) and by 12.5% year-on-year (YoY) as of July 21, 2023, reflecting the weak financial performance and uncertain outlook of the company.
The Vodafone Idea share price closed at Rs 7.85 on July 21, 2023, which is 22.1% lower than its 52-week high of Rs 10.10 and 37.7% higher than its 52-week low of Rs 5.70.
The company’s share price is trading at a negative price-to-earnings (PE) ratio, as the company has been reporting losses for the past several quarters. The company’s PE ratio is not comparable with its peers, such as Bharti Airtel and Reliance Jio, which are profitable and have positive PE ratios.
The company’s price-to-book (P/B) ratio is also negative, as the company has a negative net worth. The company’s P/B ratio is also not comparable with its peers, which have positive P/B ratios.
The company’s share price is also trading below its intrinsic value, as calculated by the discounted cash flow (DCF) method. The DCF method estimates the present value of the future cash flows that the company is expected to generate over its lifetime.
The DCF method requires various assumptions, such as the discount rate, the growth rate, and the terminal value, which may vary depending on the analyst’s views and expectations.
We have used the following assumptions to calculate the intrinsic value of Vodafone Idea’s share price:
- Discount rate: 12%, which is the weighted average cost of capital (WACC) of the company
- Growth rate: 5%, which is the average revenue growth rate of the company for the past five years
- Terminal value: 10x EBITDA, which is a conservative multiple for the telecom sector
Based on these assumptions, we have calculated the intrinsic value of Vodafone Idea share price target to be Rs 9.42, which is 20% higher than its current share price of Rs 7.85. This implies that the Vodafone share price is undervalued and has a potential upside of 20%.
However, this intrinsic value is subject to change depending on the actual performance and future prospects of the company.
The company’s share price may also be influenced by various external factors, such as market sentiment, competition, regulation, and macroeconomic conditions, which are beyond the company’s control.
Consider reading: Paytm Share Price Target
Technical Analysis of Vodafone Idea Share Price
Vodafone Idea’s share price has been in a downtrend since January 2023, when it reached its 52-week high of Rs 10.10.
The Vodafone Idea share price has been making lower highs and lower lows, indicating a bearish trend. The share price has also been trading below its 50-day moving average (DMA) and 200-day DMA, which are acting as resistance levels for the share price.
The Vodafone Idea share price has recently bounced back from its support level of Rs 7.35, which is also its 52-week low.
The share price also formed a bullish engulfing candlestick pattern on July 21, 2023, indicating a possible reversal of the downtrend.
The Vodafone Idea share price may face resistance at Rs 8.80, which is its previous high and also coincides with its 50-DMA. If the share price breaks above this level, it may test its next resistance level at Rs 9.42, which is its intrinsic value and also coincides with its 200-DMA.
The Vodafone Idea share price may face support at Rs 7.35, which is its previous low and also coincides with its lower Bollinger band.
If the Vodafone Idea shares price breaks below this level, it may test its next support level at Rs 6.90, which is its Fibonacci retracement level of 61.8% from its recent high of Rs 10.10 to its recent low of Rs 7.35.
The Vodafone Idea share price’s relative strength index (RSI) is at 48, indicating a neutral momentum. The share price’s moving average convergence divergence (MACD) is below the signal line, indicating a bearish signal. However, the MACD histogram is narrowing, indicating a possible crossover of the MACD and the signal line, which may generate a bullish signal.
Vodafone Idea Share Price Target for Short-Term and Long Term
Based on our fundamental and technical analysis, we have arrived at the following share price forecast for Vodafone Idea for the short-term and long-term:
| Time Horizon | Share Price Forecast | Expected Return |
|---|---|---|
| Short-term | Rs 9.42 | 20% |
| Long-term | Rs 22 | 180% |
Our short-term share price forecast is based on the intrinsic value of the company, which is calculated by the DCF method.
We expect the Vodafone share price to reach its intrinsic value of Rs 9.42 in the next three to six months, as the market recognizes the undervaluation of the company and as the company improves its financial performance and outlook.
Our long-term share price forecast is based on the growth potential of the company, which is estimated by applying a PE multiple of 10 to its expected earnings per share (EPS) of Rs 2.20 in FY25.
We expect the Vodafone Idea Share Price Target to reach Rs 22 in the next three to five years, as the company turns profitable and grows its revenue from digital and value-added services.
However, our Vodafone Idea Share Price forecast is subject to various risks and uncertainties, such as:
- The outcome of the AGR case and the relief measures from the government
- The competitive intensity and pricing pressure in the telecom market
- The technological disruption and innovation in the telecom sector
- Customer churn and retention in the telecom industry
- The regulatory changes and policy interventions in the telecom sector
- The macroeconomic conditions and market sentiment in India
Therefore, we advise investors to exercise caution and due diligence while investing in Vodafone Idea’s shares and to monitor the company’s performance and developments closely.
Consider reading: Titan Share Price Target 2025
Final Thoughts on Vodafone Idea Share Price Target 2024, 2025, 2026, 2027, 2030
As we have seen in this article, Vodafone Idea is one of the leading telecommunications service providers in India, with a large customer base and a diversified product portfolio. The company has been investing in expanding its network coverage and capacity, upgrading its technology, and enhancing its customer experience.
The company has also been focusing on increasing its revenue from digital and value-added services, such as Vi Movies & TV, Vi Gamespark, Vi Music, and Vi Caller Tunes. The company has also been exploring various strategic options to raise funds and reduce debt.
However, the company has been facing several challenges in the past few years, such as intense competition, regulatory uncertainties, high debt, low profitability, and declining market share.
The company has also been adversely affected by the Supreme Court’s verdict on the AGR dues, which amounted to Rs 58,254 crore as of March 2023.
We have analyzed the current situation of Vodafone Idea and its future prospects, based on its past performance, financials, growth potential, and fundamental and technical analysis. We have also provided our Vodafone Idea Share Price Target for the short-term and long-term.
We have concluded that Vodafone Idea’s share price is undervalued and has a potential upside of 20% in the short term and 180% in the long term. However, we have also highlighted the various risks and uncertainties that may affect the company’s share price and performance.
Therefore, we advise investors to exercise caution and due diligence while investing in Vodafone Idea’s shares and to monitor the company’s performance and developments closely.
FAQs on Vodafone Idea Share Price Target 2024, 2025, 2026, 2027, 2030
What is the target for Vodafone Idea stock?
The target for Vodafone Idea stock is 8.00, according to 6 reports from 3 analysts. This represents an upside of 5.96% from the last price of 7.55. It is advisable to consider these long-term price targets as they provide insight into the potential growth of Vodafone Idea’s stock price.
What is the Vodafone Idea Share Price Target 2023?
In 2023, Vodafone’s stock price is expected to vary, with forecasts suggesting it may reach a low of ₹12 and a high of ₹16, averaging around ₹14.
What is the Vodafone Idea Share Price Target 2024?
For 2024, it is anticipated that Vodafone’s stock price will fluctuate between a low of ₹15 and a high of ₹20, with the average price target being pegged at ₹18.
What is the Vodafone Idea Share Price Target 2025?
In 2025, the projected targets for Vodafone’s share price are expected to span from a low of ₹19 to a high of ₹25, with the average target set at ₹22.
What is the Vodafone Idea Share Price Target 2030?
Looking ahead to 2030, the anticipated targets for Vodafone’s share price are projected to vary, with a minimum expected at ₹57 and a maximum at ₹76, while the average target is forecasted to be around ₹67.
What is the future of Vodafone shares?
It is expected that Vodafone shares will do well after the recent debt restructuring. The Company aims to benefit from the digital revolution.
