Global brokerage firm Jefferies saw a massive uptick in Vodafone Idea Limited shares, giving a ‘Buy’ call for the telecom stock. The brokerage estimates VIL's shares could reach Rs 29 in a bull case scenario, up 143 per cent from the current level. In the bull case scenario, the stock could fall by 25 per cent to Rs 9 per share.
Meanwhile, Jefferies revised the base case target price to Rs 16, up 34 per cent from the current price. The new base target is lower than the earlier target of Rs 20.
Vodafone Idea shares ended the session at Rs 12.11 on Tuesday, October 27, as compared to the previous day's closing of Rs 11.95 on Tuesday on NSE.
Scenario | Target Price (₹) | Implied Upside / Downside |
|---|---|---|
Bull Case | 29 | +143% |
Base Case | 16 | +34% |
Bear Case | 9 | -25% |
What Did The Brokerage Say?
- The firm said the stock's risk-reward ratio has now turned positive after a 23 per cent decline.
- Jeffries noted that Vodafone-Idea's share price declined despite improved subscriber growth.
- The brokerage firm estimates that VIL's network expansion and tariff increases will position the company to achieve an annual CAGR of 11 per cent in revenue and 25 per cent in EBITDA during FY26-29.
- Vodafone Idea shares are trading below their 5-year average multiple.
- According to our estimates, it has a potential for a 25 per cent downside and a 143 per cent upside, making the risk-reward attractive.
- The firm said that we lowered our target multiple to 20x and the target price to Rs 16 per share, while maintaining our 'BUY' rating.
- The EBITDA outlook for FY2028 remains unchanged, in line with consensus estimates, the brokerage said.