Vodafone Idea Stock May Touch 25 Rupees In Bull Case Says Citi Research

Vodafone Idea Stock Price: The days of Vodafone Idea, the country's third largest telecom company, are on the rise and brokerage houses are looking positive about the stock of Vodafone Idea. Investment Bank City has released a report regarding the company. Citi said that Vodafone Idea has been successful in raising funds. Due to the support received from the government, the company seems to be turning around.

Citi said Aditya Birla Group Chairman Kumar Mangalam Birla also said that the company has got a new lease of life. After this, the brokerage house has increased the target price of Vodafone Idea stock. Citi said that Vodafone Idea stock can go up to Rs 15 but in a bull case the share can also touch the level of Rs 25. On Thursday, the stock closed at Rs 12.65 with a decline of 0.39 percent.

In its report, Citi Research said that in a bull case, Vodafone Idea stock can go up to Rs 25, which is 95 percent more than the current level. Citi has also given many arguments behind increasing the stock price. Citi says that due to the increase in mobile tariff, the average revenue per user (ARPU) of the company will increase to Rs 250 by the financial year 2027-28. According to Citi Research, this rise in the stock may be due to the addition of new subscribers and reduction in AGR debt by up to 50 percent. Citi Research said that in the bull case, a lot remains to be done to achieve the target of Rs 25 for the stock.

Citi said that after raising funds, 24 percent stake in Vodafone Idea is with the government, 23 percent is with Vodafone PLC, 15 percent is with Aditya Birla Group and 38 percent is with the public. The report said that the management is positive that after the 2024 Lok Sabha elections, there will be a tariff hike in the telecom industry soon, which is necessary to compensate for the network and spectrum expenses. City estimates that tariff hike may be seen in two rounds. Apart from the tariff increase, Vodafone Idea will also benefit from customers upgrading from 2G to 4G. 42 percent of the company's customers are not on 4G whereas only 29 percent of Airtel's customers are not on 4G.

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