No hope left for Vodafone Idea investors after Q1 earnings? Here’s the Street view

Despite narrowing of quarterly loss and healthy jump in ARPU, analysts do not see any major upside in Vodafone Idea stock after going through its Q1 report card due to subscriber churn, capex needs and competitiveness.

Global brokerage Nomura said impending 5G rollouts by peers could lead to accelerated market share losses for the telco. It has maintained a ‘reduce’ rating on the stock with a target price of Rs 8, signalling a potential downside risk of around 9 per cent.

Stating that fund-raising is critical for Vi, it said the telco’s 5G rollouts would remain constrained in the near term as the current cash EBITDA run-rate (Rs 84 billion) is insufficient to meaningfully increase capex, large upcoming debt repayments (Rs 70 billion) and also delays in external fund raise.