A lot of My Followers requested me about the future of Vodafone's Idea, will the company survive soon, or will it go bankrupt many shareholders had invested in this company before the amalgamation of the two Vodafone and Idea when the share was trading on Indian Exchanges as an Idea at a higher price.
Please read this article carefully to get interesting facts and knowledge to make money from this stock rather than book losses. Just for those who don’t know much about the Vodafone Idea, it is the 3rd Largest Indian Telecom Company in its Industry. Its Parent or Holding Companies are Vodafone Group Plc, Aditya Birla Group. The Market Capitalization is Rs 16,954 Crore. The company delivers 2G and 4G, 4G+, Volte, and Vowifi across India. In India, Mumbai and Gandhinagar are its headquarters.
Here are the Top 10 Reasons to Buy Vodafone Idea Share.
10) Vodafone Idea Share - Cheap Price:
If all the above points are very troublesome, how is the company’s stock trading at exchanges? In recent years the company market price has fallen tremendously. The reasons for such a price drop are the company's huge debt, AGR Issue, and 4 years of continuous losses. Despite all factors, the company stock is still trading on exchanges at Rs 6. Hence it is time to buy the stock rather than sell.
9) 3rd Largest in Telecom Sector:
Suppose you look at both companies separately for a while, then Vodafone of Europe and Idea of India have a strong history in the telecom sector. Before the emerge of Reliance, Jio Idea was in 3rd place in India and Vodafone at second. But still, the company is giving healthy competition to its competitors in the Telecom Industry.
8) Strong Shareholding Pattern:
The Vodafone Idea Short Form VI has a solid Shareholding Pattern; the Promoter Holding is 72% having the Highest Stake of Grasim Industries Limited of 11.55%, Euro Pacific Securities Ltd 11.13%, Vodafone Telecommunication India Ltd 5.65%, Asian Telecommunications Investments (Mauritius) Limited 3.41%.
7) Retaining its Customer Base:
Though many new users are not using Vodafone Idea, the company has managed well to retain its customer very efficiently and effectively. Many customers of VI are not recharging the sims; still, the company is providing free recharges and data packs for retaining its customer. This is the very positive side of this company in this Covid-19.
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6) Improving offers to its customers:
The Company has rolled with many amazing recharge plans and offerings for its customer. It Provides Cheapest 1 day Data and Calls Plans in its Industry. It strives to deliver the best service to its customer through business automation attractive offerings.
5) Government Relaxation:
Many of you have read this or heard in Vodafone Idea news that Government is planning or searching for ways to give benefits to VI, Airtel, and other telecom players to pay AGR dues over 20 years. In the news, there is also that in next year's budget, the Govt. may give some booster to the telecom sector.
4) Vodafone Group Extending 5G Services in Europe:
The Vodafone Idea has 5G Services across 12 Countries in Europe and Still Expanding it over Europe. Countries Included in Europe are England, Finland, Ireland, Italy, Spain, and Germany.
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3) Financial Position of Vodafone Idea for the Year F.Y 2019-20:
After Reading the Financials for F.Y 2019-20 thoroughly, the auditor has not qualified, disclaimed, or not given an adverse opinion on the financials in his report. Both the company management and auditor have not said any negative of the company’s going concerns. Read the extract of Financials below:
“There has been no change like the business of your Company. There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and the Company’s operations in the future, other than the order passed by the Hon’ble Supreme Court on the AGR matter, which has been disclosed in the significant developments section of the Board’s report.”
2) Probability of getting stock at a low price:
The Face Value of VI Share is Rs 10. The Current Market Price of Vodafone Idea Share NSE is highly influenced by the news and rumors. Some Big players use this news and rumors for speculation and gain huge benefits. It is advisable for those investors having VI shares for a long time to do average in it. One must accumulate and average it if he gets stock price getting dipped.
1) Expecting Positive Comments from Management for F.Y 2020-21 AGM:
As per Vodafone's idea limited to the latest news, the company losses have been decreased in the above-mentioned financial year, i.e., F.Y 2020-21. The company is discussing various matters such as fundraising and debt reduction to get back on top. There is a strong possibility that investors may get some good news from management.
What will be the Vodafone Idea Share Price Target 2022?
Many Followers have asked me the question regarding the Vodafone idea share target; the answer is here though many brokerage houses have cut the target of the Vodafone Idea. We have remained with a neutral rating with a target of Rs 12.
Conclusion:
The views expressed in this article are to give confidence among the shareholders of Vodafone Idea not to sell the stock on rumors but rather than to hold or average it and wait patiently for the good market price. Vodafone Idea – the Telecom company, is trying to recapture its lost position by using possible ways to reach there.
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