Key Issue
Recurring Annual Loss: The financial performance of company deteriorate over the years last 7 years. Before 2018 company was profitable and now reporting annual net loss Rs 31,238 cr.
Hight Debt: Debt of the telecom operator is rising at an alarming rate. It owes Rs 2.1 trillion to the government, with a large part of it under moratorium until first half of FY26. VI would have repayments of Rs 29,100 crore in the second half of FY26. It has to pay Rs 43,000 crore annually over FY2027-31.
Declining Subscribers Base: Vi had lost 19 percent market share since the merger.
Hustle
FPO: The company raised funds amounting ₹26075 crore (including proposed preferential issue of Rs. 4,533 Crore to Nokia, Oriana and Ericsson).
Network Expansion: The proceeds from the FPO will be used primarily for network expansion, including the rollout of 5G services within the next six to nine months. Specifically, ₹12,750 crore from the FPO will be allocated for setting up 22,000 5G sites and expanding and upgrading existing 4G infrastructure.
Spectrum: Vodafone announced acquisition of 50 MHz of spectrum across low band and mid band spectrum (900 MHz, 1800 MHz and 2500 MHz) in 11 circles at a total commitment of Rs. 3,510 Crore.
Tariff Hike: Expected tariff hike, and the possibility of adjusted gross revenue (AGR) relief, this should significantly boost VI’s cash flow position.
It may, however, still face a cash shortfall from the second half of FY26 once the ongoing moratorium on the government’s AGR and spectrum repayments ends
Technical Parameter
Long-Term Downtrend: From 2016 to 2020, the chart shows a significant long-term downtrend where the stock price consistently fell from higher levels to lower levels. Post-2020, there is a noticeable phase of consolidation where the stock price has been moving sideways with minor ups and downs, indicating a period of accumulation or indecision among investors.
Current Resistance: The green trendline marked as "resistance" shows the price struggling to break above this level. This trendline connects the highs from different periods, indicating strong selling pressure around those levels.
Price Increase: There is a noticeable increase in price from the FPO price of Rs 11 i.e., return of 64%.
Increase in volume (Vol 21.156B) accompanying the price rise suggests strong buying interest.
The chart indicates a potential upside of 190% if the stock can break past its current resistance levels and approach the historical resistance level around 75-80 INR. The previous lows and the consolidation range around 8-12 INR can act as support levels.
Disclaimer: The information and publications are not meant to be, and do not constitute, financial, investment, trading or any other types of advice or recommendations.
Recurring Annual Loss: The financial performance of company deteriorate over the years last 7 years. Before 2018 company was profitable and now reporting annual net loss Rs 31,238 cr.
Hight Debt: Debt of the telecom operator is rising at an alarming rate. It owes Rs 2.1 trillion to the government, with a large part of it under moratorium until first half of FY26. VI would have repayments of Rs 29,100 crore in the second half of FY26. It has to pay Rs 43,000 crore annually over FY2027-31.
Declining Subscribers Base: Vi had lost 19 percent market share since the merger.
Hustle
FPO: The company raised funds amounting ₹26075 crore (including proposed preferential issue of Rs. 4,533 Crore to Nokia, Oriana and Ericsson).
Network Expansion: The proceeds from the FPO will be used primarily for network expansion, including the rollout of 5G services within the next six to nine months. Specifically, ₹12,750 crore from the FPO will be allocated for setting up 22,000 5G sites and expanding and upgrading existing 4G infrastructure.
Spectrum: Vodafone announced acquisition of 50 MHz of spectrum across low band and mid band spectrum (900 MHz, 1800 MHz and 2500 MHz) in 11 circles at a total commitment of Rs. 3,510 Crore.
Tariff Hike: Expected tariff hike, and the possibility of adjusted gross revenue (AGR) relief, this should significantly boost VI’s cash flow position.
It may, however, still face a cash shortfall from the second half of FY26 once the ongoing moratorium on the government’s AGR and spectrum repayments ends
Technical Parameter
Long-Term Downtrend: From 2016 to 2020, the chart shows a significant long-term downtrend where the stock price consistently fell from higher levels to lower levels. Post-2020, there is a noticeable phase of consolidation where the stock price has been moving sideways with minor ups and downs, indicating a period of accumulation or indecision among investors.
Current Resistance: The green trendline marked as "resistance" shows the price struggling to break above this level. This trendline connects the highs from different periods, indicating strong selling pressure around those levels.
Price Increase: There is a noticeable increase in price from the FPO price of Rs 11 i.e., return of 64%.
Increase in volume (Vol 21.156B) accompanying the price rise suggests strong buying interest.
The chart indicates a potential upside of 190% if the stock can break past its current resistance levels and approach the historical resistance level around 75-80 INR. The previous lows and the consolidation range around 8-12 INR can act as support levels.
Disclaimer: The information and publications are not meant to be, and do not constitute, financial, investment, trading or any other types of advice or recommendations.