InvestorQ : After the sharp rally in Vodafone Idea, do you see further upsides in the stock? Is it worth buying at these prices?
Dia Deshpande made post

After the sharp rally in Vodafone Idea, do you see further upsides in the stock? Is it worth buying at these prices?

Answer
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Anu Biswas answered.
3 months ago


You are right. The stock of Vodafone Idea is up by nearly 129% in the last one month. Of course, you can argue that the stock was too low priced. But even large brokers like CLSA have argued that the stock was extremely underpriced considering the potential of digital in India and the kind of valuations that Bharti and Jio were getting. The latest trigger has been Google eying a 5% stake in Vodafone Idea. In addition, the sharp price hikes in the last few months and the weeding of low value customers has already boosted ARPUs in the last quarter. This is only getting accentuated in the coming months. According to experts, where Vodafone Idea could really score is that they have an unmatched 23% post-paid subscriber base and that is substantially higher that what Bharti Airtel or Jio are currently enjoying. The only challenge could be the AGR issue. Traders may ideally want to wait and buy the stock on dips.