Jefferies initiated coverage on Vodafone Idea with a 'Buy' rating, projecting a 132% upside in the stock price to ₹36 driven by tariff hikes and subscriber growth, according to livemint.com. The brokerage currently values the stock at ₹20 but sees potential for further gains if Vodafone Idea raises tariffs more aggressively.
The global brokerage highlighted Vodafone Idea's improving fundamentals, noting revenue growth and operating leverage as key drivers for the turnaround. Jefferies expects the company’s return on invested capital (ROIC) to improve from negative territory to double digits by fiscal year 2032. The firm views Vodafone Idea as a high-beta opportunity, reflecting both risk and potential reward in the Indian telecom sector.
This rating comes amid a broader context of tariff increases across the Indian telecom market, which have supported revenue growth for major players. Vodafone Idea’s turnaround prospects contrast with its recent financial struggles, and Jefferies’ target price significantly exceeds current market valuations. The brokerage’s outlook aligns with sector trends where tariff hikes are helping improve cash flows and profitability for telecom operators.
Vodafone Idea’s stock performance will be closely watched as tariff adjustments unfold. The company’s next quarterly earnings report, expected in late October, will provide further clarity on subscriber growth and revenue impact from recent tariff changes, according to livemint.com.