Vodafone Idea Share Price Target 2025: Stock Zooms 22% As Nifty Bleeds - Buy, Sell Or Hold?

Vodafone Idea Share Price Target 2025: Shares of Vodafone Idea shares zoomed 22% on the BSE on Tuesday, after the company said that a government stake in Vodafone Idea will more than double to 48.99 per cent as it is set to acquire shares worth Rs 36,950 crore in lieu of outstanding spectrum auction dues.

The government is already the single-largest shareholder in the debt-ridden Vodafone Idea, with a 22.6 per cent stake, and the fresh move will increase its holding to more than the combined stake of the company’s promoter firms, Vodafone and Aditya Birla Group.

VIL promoters hold 14.76 per cent and 22.56 per cent stake in the company, respectively, at present. Here are the top recommendations by brokerages and market experts on the telco stock:

Citi 'BUY' on Vodafone and Idea Stock

The brokerage firm, Citi, has retained a Buy/High-risk rating with a Rs 12 target price. Citi highlights the government's decision to convert part of Vodafone Idea's (VI) outstanding spectrum dues into equity at Rs 10 per share, a 47% premium to the stock's last closing price.

This development, which increases government shareholding in VI from 22.6% to 49%, is viewed as a timely and significant display of support that provides cash flow relief over the next three years and enables VI to complete its bank debt raise.

Additionally, this move is expected to alleviate concerns for tower companies like Indus Towers, making them a top pick alongside VI, both tagged with a 90-day upside Catalyst Watch.

Ambit Institutional Equities 'BUY'

Another broking, Ambit Institutional Equities, has given the telco stock a BUY rating, with a target price of Rs 15 at the current market price of Rs 6.8.

Ambit Institutional Equities emphasizes the conversion's role in extending VI a lifeline, allowing it to secure Rs 250 billion in debt funding by the end of December 2025. This funding would support VI's targeted Rs 500-550 billion capex from FY25 to FY28 while enhancing customer retention efforts.

However, the government and VI must maintain tariff hikes to ensure future spectrum payments and sustain the industry's three-private player structure. Ambit also points out that equity funding at a premium reduces risks for VI's investors, with the firm's increased capex visibility benefiting Indus Towers, which is noted for its attractive FY25/26E dividend yield.

Nomura 'BUY' Rating on Vodafone Idea Share Price

Similarly, Nomura reiterates its Buy rating for VI, albeit with a lowered target price of Rs 10 (previously Rs 12), citing revised assumptions for FY25, modest subscriber losses, and higher operational expenses.

With equity dilution factored in, alongside reduced debt and interest costs, Nomura forecasts ARPU growth of 13% for FY26-FY27, reaching Rs 200 in FY27. While VI's outlook has improved, Nomura underscores the critical need for VI to finalize its debt raise to invest in networks and return to modest subscriber growth, with ARPU expansion being pivotal for the firm's recovery.

What Market Experts Said?

Market experts are also bullish on the Vodafone Idea stocks. "Vodafone Idea looks strong for a follow-up move towards 9 Rs, support is at 7.45. Those who are already holding can stay put but not advisable to chase after today's price spurt since the risk and reward are not favourable," said Nilesh Jain, VP and Head of Technical and Derivatives at Centrum Broking Limited.

Similarly, Sugandha Sachdeva, Founder of SS WealthStreet said, The stock is showing strong support around the Rs 6.6 mark. On the upside, it is expected to initially test Rs 11 levels, followed by a potential move towards approximately Rs 11.8 levels, in the medium term.

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