Tue Sep 24 05:12:56 UTC 2024: ## Vodafone Idea’s Capex Plan Sparks Hope, But Analysts Remain Cautious

**Mumbai, India** – Shares of Vodafone Idea surged over 3% on Monday following the company’s announcement of a significant Rs 50,000-55,000 crore investment plan over the next three years. The investment, aimed at expanding 4G coverage, rolling out 5G, and boosting capacity, is seen as crucial for the struggling telecom operator’s future.

Motilal Oswal Financial Services (MOFSL) expressed optimism about the capex plans, stating that they could help Vodafone Idea curb subscriber churn. The company has been grappling with high churn rates due to limited network investments, which have impacted customer experience.

Despite the positive news, MOFSL maintained a ‘neutral’ stance on the stock, citing the fact that the capex plans are yet to be realized. The firm set a price target of Rs 12, representing a potential upside of over 11% from the previous close.

“While the capex plan is encouraging, it’s important to remember that it will take time for the benefits to materialize,” said an analyst from MOFSL. “The company is also facing a number of other challenges, including the AGR case and intense competition in the telecom sector.”

The company expects to see a reduction in subscriber churn from Q4 onwards as the capex rollout is expected to begin in Q3. Vodafone Idea also anticipates another tariff hike of close to 20% next year, which could boost its Average Revenue Per User (ARPU) and earnings.

However, investors should be aware that the AGR case remains unresolved. The Supreme Court rejected Vodafone Idea’s curative petition, and the company is currently engaging with the government to address calculation errors.

While the capex plan offers a ray of hope for Vodafone Idea, analysts remain cautious. The company’s success will ultimately depend on its ability to execute its plans effectively and navigate the numerous challenges it faces.

**Disclaimer:** This news article is for informational purposes only and does not constitute financial advice. Investors should consult with certified experts before making any investment decisions.

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