00:00For Vodafone Idea, Friday proved to be a bad day.
00:04According to a report by global brokerage firm Goldman Sachs,
00:07the shares of the telecom company have fallen by 14%.
00:10Goldman Sachs has reduced the target price for Vodafone Idea's stock to Rs 2.5.
00:16What has been said in the Goldman Sachs report, let's know in this video.
00:21The company's stock fell Rs 12.92 during NSE Friday trading and Rs 12.91 on BSE.
00:29It improved by Rs 2.5 in the afternoon and was trading at Rs 13.40.
00:34On Thursday, the stock closed at Rs 15.09.
00:38Goldman Sachs has said in its report that Vodafone Idea's stock can go down to Rs 2.5.
00:44It has fallen by almost 83%.
00:47The brokerage firm believes that Vodafone Idea's shares will not improve for the next 3-4 years.
00:53The company has recently presented a follow-on public offer, i.e. FPO, to raise money from the market.
00:59Promoters had also invested in it, which resulted in the company earning Rs 20,100 crores.
01:05The company has also prepared to take a loan of Rs 25,000 crores.
01:10During the company's FPO, Goldman Sachs had taken almost 8.1 million shares at a rate of Rs 11.
01:15Now, by giving such a report, the brokerage firm has shocked everyone.
01:19The brokerage firm has said that Vodafone Idea has to make payments related to big AGR and spectrum from financial year 26.
01:27The government also has an option to convert some of the balance into equity.
01:30In such a case, the assumption is that the user will have an increment of Rs 200-270, i.e. about 120-150% on ARPU.
01:40In the medium term, there is a low possibility of Vodafone Idea's free cash flow being positive.
01:45Goldman Sachs has said that there is a low possibility of free cash flow being positive until financial year 2031.
01:54If the company is successful in doing this, it will be able to bring the free cash flow to a neutral level.
01:59If the company is successful in doing this, it will be able to bring the free cash flow to a neutral level.
02:05So, after this report by Goldman Sachs, there has been a big shock in the share of Vodafone Idea.
02:10Very bad has been proven today.
02:12And the target price that has been given has been made Rs 2.5.
02:16What do you think? Do tell by commenting.
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