Vodafone Idea stock is expected to fall sharply. Brokerage house Motilal Oswal Financial Services has advised investors to sell the stock. The brokerage house has asked to sell the stock with a target price of Rs 5 per share.
Vodafone Idea Stock Price May Fall – Motilal Oswal’s Sell Call
Motilal Oswal Financial Services has said that the third quarter of FY 2024-25 has been very weak operationally, due to which the stock has been downgraded. According to the brokerage house, the company’s subscriber base has declined quarter on quarter and it has lost 5.2 million subscribers while our estimate was 4 million.
Lower Revenue Per User Compared to Rivals: According to Motilal Oswal, Vodafone Idea’s average revenue per subscriber was 1 percent less than the estimate at Rs 163, while the average revenue per subscriber of its rival telecom operators has grown at the rate of 4 to 5 percent quarter on quarter.
Vodafone Idea Losing Market Share to Airtel: The brokerage house said in its report, Vodafone Idea has lost its market share in the third quarter due to the departure of data subscribers and weakness in customer engagement metrics. While Bharti Airtel has proved to be the biggest winner. The company’s revenue market share and subscriber market share have seen a jump of 80 and 50 basis points quarter-on-quarter.
Financial Challenges & Government Dues in 2026
Motilal Oswal Financial Services said, the company has to pay the dues of the Government of India from the first half of the year 2026 and the company does not seem to be successful in raising debt. In such a situation, the company may face a cash crunch and in the financial year 2026-27, the company may face difficulties in meeting the capital expenditure guidance of 500 to 550 billion. Due to this, the brokerage house has downgraded the stock.
