Vodafone Idea shares: Nomura India ups target price by 131%. Here's why

Vodafone Idea share price: Vodafone Idea's Q4 results showed that the pace of subscriber loss is moderating while average revenue per user saw modest uptick.

Vodafone Idea share price: Brokerage Nomura India upped its target price on Vodafone Idea Ltd by 131 per cent to ₹15 per share from ₹6.50 earlier. It also upgraded the stock to ‘Neutral’ citing Q4 results for Vodafone Idea which were in line with estimates. Vodafone Idea's Q4 results showed that the pace of subscriber loss is moderating while average revenue per user (ARPU) saw a modest uptick.

Vodafone Idea share price: Nomura India upgraded the stock to ‘Neutral’ citing Q4 results for Vodafone Idea which were in line with estimates. (AP)

Nomura India said that Vodafone Idea is gearing up to meet clear skies ahead, adding, “We upgrade the stock to Neutral (from Reduce) with a revised target price of ₹15 (from ₹6.50); we roll forward our valuation to March 2026 with an EV/Ebitda multiple of 15 times. We note the outlook for the industry has improved considerably with all players aligned on the need for ARPU hikes and the industry setting into a 3-private player market.”

The brokerage trimmed its FY25 Ebitda estimates by 2 per cent and raise FY26 Ebitda by 6 per cent. It also said that Vodafone Idea will be able to complete its fund raise materially improving the outlook.

"We expect the industry to take a material tariff hike of 15% following the conclusion of the elections, which should be a key trigger for the stock," it said.