The weak performance in the second quarter has not brought good news for Vodafone-idea. Global brokerage firm Goldman Sachs has expressed the possibility of a decline of up to 66 percent in Vodafone-Idea shares. If this happens then Vodafone-Idea shares will reach Rs 2.40.
Along with this, the global brokerage firm believes that the company's market share and cash flow may remain under pressure. Whereas the financial condition of the company is fine. In such a situation, the company may find it difficult to compete with its competitors. This means that the path will not be easy for Vodafone-Idea in the coming days.
Vodafone-Idea lost Rs 7,176 crore in the second quarter of the financial year, whereas it was Rs 8,738 crore in the same quarter last year. Meanwhile, there has been a slight increase of 2 percent in year-on-year earnings.
There has been a lot of turmoil in the stock market in the last one and a half months. There is no sector whose shares have not seen a decline, but on Tuesday i.e. 19th November there was a surge in the stock market. Nevertheless, Vodafone-Idea shares hit a lower circuit of 2 percent and reached Rs 7.11.
Vodafone-Idea's average revenue per user (ARPU) in the second quarter increased by 7.8 percent quarter-on-quarter as expected, but in the meantime the company has lost more customers than expected. Whereas Vodafone-Idea is planning to increase its customer base from financial year 2025.
Along with this, the company is talking to the Central Government for bank guarantee waiver and AGR solution and is working on debt financing.
Goldman Sachs had released a similar report for Vodafone-Idea in September also, after which a 14 percent decline was seen in Vodafone-Idea's shares on September 6.
