Vodafone Idea a retail trader’s play, no way to estimate its equity value: Sandip Sabharwal

Among the listed telecom players is Bharti to be the play here because the up move on Vodafone seems to have plateaued.
The gains in the telecom market seem to be asymmetrical. On one hand, we have seen Bharti gain in terms of ARPUs and on the other hand, we are seeing Vodafone-Idea lose out. Some of the higher value users are quitting Vodafone-Idea because of their financial issues and porting out to Airtel mostly or to Jio.

Vodafone-Idea is in a tricky situation still and although they will benefit from the tailwinds which are there for the entire telecom sector, but for equity investors the equity value of the stock is very tough to estimate. It is just a retail trader’s play now where people see it is a Rs 7-8 stock and keep on buying and selling. Otherwise, with their debt burden, there is no way we can estimate any equity value for this company.