Vodafone Idea - A turnaround story
After more than 3 years the promoter Vodafone UK i finally showing interest in the company. They had written off Vodafone India to zero in there international books and said they wouldn't pump in more money. Once the government realised that they would be loosing the company and another big bankruptcy they moved quickly to reform the sector and reduce the debt burdens..On the side Vodafone UK is now actively looking to raise money which they will be pumping back into Vodafone India + clear dues. VI has set a march deadline to raise money and try to fix the company..it won't be easy with the debt they have but there is a shot it happens coz India needs atleast 3 teleco's. ARPU (Avg realisations per user) are also rising which will lead to higher profits but if vodafone doesn't move quickly they are constantly loosing subscribers.
Long close to 9.60/10 with a SL below 8. Rs12 will be a decent sized resistance coz few years ago thats where the company raised money and many people subscribed. When they raise again there will be another equity dilution so be cautious of that too.
Consider this the HIGHEST RISK investment so never invest more than 2-3% of your pf in such a stock..and this level of exposure among all your highest stocks cannot be more than 5% in total portfolio coz then your playing a very dangerous game which can lead to super high returns but also super high under performance.
Long close to 9.60/10 with a SL below 8. Rs12 will be a decent sized resistance coz few years ago thats where the company raised money and many people subscribed. When they raise again there will be another equity dilution so be cautious of that too.
Consider this the HIGHEST RISK investment so never invest more than 2-3% of your pf in such a stock..and this level of exposure among all your highest stocks cannot be more than 5% in total portfolio coz then your playing a very dangerous game which can lead to super high returns but also super high under performance.
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