Bull vs Bear: Should you invest in Vodafone-Idea stock? Zee Business analysis reveals this!
In today's edition of BULL Vs BEAR, Zee Business' Senior Research Analyst Kushal Gupta and Research Analyst Ashish Chaturvedi bring exclusive research on the Vodafone-Idea stocks.
In today's edition of BULL Vs BEAR, Zee Business' Senior Research Analyst Kushal Gupta and Research Analyst Ashish Chaturvedi bring exclusive research on the Vodafone-Idea stocks. The research team brings the positives and negatives of this stock along with an expert take.
Arguing for Vodafone-Idea shares, Gupta said that the stock is becoming very interesting from the price point and seems to be climbing around the 10 level. The biggest reason for this is because the company has accepted the moratorium of 4 years, which was given on AGR dues. This appears to be a big point for the revival of the company. In fact, their cash flow will also improve in the future because the way the tariff is increasing, the company can benefit a lot.
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Chaturvedi countered that the telecom industry has completely changed now and it is a big question whether Vodafone-Idea will participate in the 5G auction. He further said that the world has made full preparations for the low orbit satellite. Apart from Vodafone-Idea, companies like Bharti Airtel, Reliance Jio are already working on this. Also, if Elon Musk's Starlink comes to India, then it will be a big problem for Vodafone-Idea as well. At the same time, the subscribers of Vodafone-Idea are also decreasing continuously.
To this, Gupta said, there is a positive change in the capital flows of Vodafone-Idea because the promoters are talking about the infusion of capital of about Rs 4500 crore. In addition, Vodafone PLC holds a stake of Rs 4400 crore in Indus Tower which will be infused into the company.
To counter this, Chaturvedi said the company owes more than Rs 50,000 crores. The entire strength of Vodafone-Idea is concentrated on who has to pay and how much. There is no plan on how to expand the business. The second thing is that there will be fundraising, foreign investors will come and give debt to the company, this has been heard for a long time but the company has not even presented any concrete plan on this.
Gupta said that it is important to know what the plan is for the company but if you see, the government has now become the largest shareholder of the company i.e. 35.8%. Through this, a lot of investors can get interested in the company.
Expert Kunal said that I am completely in favor of Chaturvedi. There is little chance that the stock will make a huge jump right away. This is due to the company's huge retail position. He then added that stocks that are highly distributed don't make a big rally.
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#VodafoneIdea में आगे तेजी या मंदी?
वोडाफोन-आइडिया में तेजी के तर्क?
वोडाफोन-आइडिया में मंदी का मूड?तेजी और मंदी के तर्क,जानिए आशीष और कुशल से...@AnilSinghvi_ @KushalGupta44 @AnilSinghvi_ pic.twitter.com/0y6cGYVh2C
— Zee Business (@ZeeBusiness) March 30, 2022
02:19 pm