Sat Sep 21 04:52:19 UTC 2024: ## Vodafone Idea Shares Rebound After Supreme Court Ruling: Nuvama Predicts 40% Upside

**Mumbai, India** – Vodafone Idea (VIL) shares experienced a sharp sell-off last week following the Supreme Court’s dismissal of the company’s petition for relief on its AGR dues. However, the stock witnessed a strong rebound on Friday, closing 7.5% higher at ₹10.52 per share.

Global brokerage firm Nuvama believes the worst is over for VIL and predicts a significant upside in the stock price. They cite several factors supporting their optimistic outlook, including:

* **Government Support:** Nuvama highlights the Indian government’s commitment to supporting VIL, which they believe is sufficient to bridge any funding gaps.
* **Strong Fundamentals:** The brokerage emphasizes that VIL’s fundamentals remain solid despite the AGR issue, with the company expected to generate ₹224 billion in EBITDA by FY26 and ₹261 billion by FY27.
* **EBITDA for Debt Reduction:** VIL plans to utilize its EBITDA to meet government dues, with a portion converted into equity, ensuring manageable debt levels.
* **Positive Industry Outlook:** Nuvama points to the robust outlook for the Indian telecom industry, driven by tariff hikes and 5G monetization, which will benefit VIL.

Based on these factors, Nuvama expects VIL’s EBITDA to grow at a 15% CAGR over the next three years. They have set a target price of ₹15 for VIL, representing a potential upside of over 40% compared to its current market price.

**Investors should note that this analysis comes from a single brokerage firm and should be considered alongside other research and expert advice.**

**About Vodafone Idea:** Vodafone Idea Limited (VIL) is a leading telecommunications company in India, offering mobile and fixed-line services to a large customer base. The company has faced several challenges in recent years, including heavy debt and intense competition in the telecom market.

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