Vodafone Idea Share Price: ET NOW In a special conversation with Swadesh, market expert Kunal said that it is better to keep distance from this stock…
highlights
- The recent rise in Vodafone Idea shares in the stock market has raised questions in the minds of investors.
- Is this a buying opportunity or the right time to take profits?
- The weak fundamental position of the company still remains a matter of concern. In such a situation, what should be the right strategy for investors?
The company’s Q3FY26 results (Vodafone Idea Q3 FY26 Results)Huge capex plans for the coming years and positive signals from management became the important reasons. Apart from this, there was also discussion in the market that the promoters may have increased the stake through the open market, which further strengthened the confidence of investors.
Vodafone Idea: Market mood changed in an hour
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There was a sluggishness in the stock in the initial minutes, but within about an hour the buying started increasing with huge volume. As a result, the stock crossed the important level of Rs 11 and gained almost 10 per cent intraday.
Long term fluctuations continue
If we look at the past performance, the picture of Vodafone Idea is not entirely positive. The stock has fallen by about 8 percent in the last one month. At the same time, investors have got returns of about 22 percent in one year. It is clear that efforts for long-term recovery are underway, but stock fluctuations still remain high.
What does shareholding pattern say?
There was no significant change in the stake of foreign investors (FII) in the December quarter. The share of FIIs remained stable at 6 per cent, although the confidence of domestic institutional investors (DIIs) appeared to be increasing. DII stake was 53.75% in September quarter
What is the trigger for stock rise?
On January 30, Vodafone Idea was the biggest gainer in the Midcap 100 stock. A statement came from Kumar Mangalam Birla. He had said that now it is not just a matter of survival for us, now the time has come for a revival. He said that the time has come to revive Vodafone Idea and take it forward. After this the stock seemed to have new life.
Vodafone Idea has got clarity on AGR. Now the company also has 10 years time. The company has got a kind of moratorium. After the statement of Kumar Mangalam Birla, a rise of about 11% is being seen in the stock today. It became the top gainer of Midcap 100. The big question is what will be the strategy of investors now?
What to do on Vodafone Idea shares – sell or buy new?
In a special conversation with ET NOW Swadesh, market expert Kunal said that our opinion regarding this stock is very clear – it is better to keep distance from it for now.
Now the company has got more clarity regarding AGR than before and the government has also given time of 10 years. But the real question is whether the company will be able to pay AGR properly in the coming 10 years? This remains the biggest question.
Experts said that if we talk about subscriber base, the number of Vodafone Idea customers is decreasing every month. On the other hand, Jio and Bharti Airtel are continuously increasing their users and market share. In such a situation, it will not be easy for the company to repay such a huge liability with the decreasing subscriber base.
He said that although there have been positive statements about the company from the Birla Group, it is difficult to trust how long the momentum generated on the basis of statements alone will last. Today the share is trading around ₹11.22.
Earlier also our view regarding this stock was negative and even today the opinion remains the same. This is not a stock in which you can make a long-term portfolio or keep averaging it again and again. The company’s debt is more than its market cap. As this difference increases, the sentiment value of the share will weaken.
What to do if you have shares?
The expert said that if you have bought recently and the share reaches around ₹11.80 to ₹12, then it would be better to book profit there. If already in the portfolio and getting profits, it would be wise to exit
While advising investors, the expert said that they should not make new purchases at all. Overall the outlook on this stock is completely negative.
Improvement seen in Q3 results
The company’s net loss declined to ₹5,286 crore in the December quarter, which is considered better on an annual basis. Quarterly earnings were recorded at Rs 10,918 crore, a growth of 1.8% year-on-year. ARPU increased to Rs 186. It recorded a growth of about 7.3%. The number of postpaid subscribers witnessed a growth of 14%.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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