Vodafone Idea shares zoom 102% in one year. Is there more steam left after multibagger returns?

Vodafone Idea shares have seen a remarkable run-up, more than doubling investors’ wealth as the stock rallied 102% over the past one year after months of underperformance. Analysts say the bullish structure is likely to remain intact.

After hitting a 52-week low of Rs 6.46 apiece in September last year, Vodafone Idea shares surged around 144% in less than a year to hit a 52-week high of Rs 15.79 apiece earlier last week. The telecom company’s shares have recently benefited from multiple tailwinds.

In early May, the Department of Telecommunications (DoT) reduced the telco’s adjusted gross revenue (AGR) dues by 27% to Rs 64,046 crore as of December 31, triggering bullish calls on the stock. Later, the stock gained after the company named billionaire industrialist Kumar Mangalam Birla as its non-executive chairman, around five years after he resigned from the same role at the telecom giant amid financial stress. In June, Vodafone Idea also announced that it had raised Rs 1,182 crore from promoter Aditya Birla Group through an issue of warrants.


A group of lenders led by State Bank of India (SBI) have now agreed to provide about $3.5 billion in debt financing to Vodafone Idea to help the telco rebuild its business, people familiar with the matter told Bloomberg. Other local lenders in the consortium include Union Bank of India and the National Bank for Financing Infrastructure and Development, the report said.

Also read | SBI-led group of lenders to provide $3.5 billion debt to Vodafone Idea

Technical structure of Vodafone Idea shares turns bullish?

The technical structure for Vodafone Idea shares has turned bullish, as indicated by the formation of consecutive higher highs on the monthly chart, along with the establishment of a strong support zone, said Hitesh Rathi, Technical Analyst (Equity & Derivatives) at Angel One. He, however, added that the 20 EMA continuing to remain below the 50 EMA on the monthly chart adds an element of uncertainty to the overall technical setup.

That said, the formation of multiple bullish patterns on its Point & Figure charts points to an improving technical outlook, particularly over the short to medium term. “On the 1% × 3% Point & Figure chart, the stock, after forming a Bullish 100% Pole and a Bear Trap, which also resulted in a retest of its 10-column moving average, has now triggered a follow-through buy on the same timeframe, underscoring the improving short- to medium-term technical setup. A similar bullish price-pattern breakout on the long-term 3% Point & Figure chart suggests that the stock still has some steam left and could move towards higher levels over the coming weeks to months,” Rathi said, adding that Angel One expects the stock to move towards the Rs 24–25 band.

However, the less constructive setup on the monthly charts warrants a strict risk-management approach, according to the analyst. This would allow the position to be held while maintaining a clearly defined risk limit, with a stop-loss placed at the Rs 12 mark, he added.

Also read | Jefferies initiates coverage on Vodafone Idea with Buy rating. Why are analysts bullish?

Should you buy, sell or hold Vodafone Idea shares?

Jefferies last week initiated coverage on the telecom operator with a ‘Buy’ rating and a price target of Rs 20 per share. The international brokerage sees Vodafone Idea as a high-beta turnaround opportunity, with subscriber stabilisation, operating leverage and tariff-led earnings growth expected to support the recovery. The brokerage forecasts an 11% revenue CAGR over FY26-29 as subscriber trends stabilise, while cash EBITDA is expected to grow at a 25% CAGR over FY26-31.

After the company’s Q1 earnings were announced earlier this month, Nomura maintained a ‘Neutral’ rating on Vodafone Idea with a target price of Rs 12.60, saying the company’s Q1FY27 performance was broadly in line with expectations, while its three-year capex programme has now kicked off. Nomura said management commentary on the planned debt raise will be a key monitorable, with progress on the fundraise also likely to benefit Indus Towers.

Motilal Oswal also has a ‘Neutral’ rating on Vodafone Idea shares, while JM Financial has an ‘Add’ rating with a target price of Rs 14.70 apiece. The stock is already trading above all these target prices.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.