Business: Global brokerage firm Goldman Sachs has raised the target price of Vodafone Idea's stock to Rs 2.5 in its report. It has also said that if the company does not face any problem, it can go up to Rs 19. Goldman Sachs said that if the company continues to increase the tariff and gets relief from the court, the situation may change. Recently, during the company's FPO, Goldman Sachs had taken about 81 lakh shares at the rate of Rs 11. Now the brokerage firm has surprised everyone by giving such a report. Due to this, questions are being raised on the credibility of these reports on social media as well.

Shares of the telecom company fell nearly 14 per cent following the report

Friday has proved to be a very bad day for Vodafone Idea. Due to a report by global brokerage firm Goldman Sachs, the shares of the telecom company have gone down by about 14 percent. Due to this, the company's stock has gone down to Rs 12.92 on NSE and Rs 12.91 on BSE during Friday's trading. At the market close, it improved slightly and closed at Rs 13.35.  

Vodafone Idea stock may fall to Rs 2.5 

Goldman Sachs has said in its report that Vodafone Idea's stock may fall by about 83 percent. There is no possibility of improvement in the company's shares for 3-4 years. The company recently introduced an FPO (Follow On Public Offer). Also, the promoters also invested capital in it. Due to this, the company received Rs 20,100 crore. Apart from this, the company has also made preparations to take a loan of Rs 25,000 crore. During the company's FPO, Goldman Sachs took about 81 lakh shares at the rate of Rs 11. Now people are calling such reports of the brokerage house as double standards.

Less likely to be free cash flow positive by FY 2031

The brokerage firm has said that Vodafone Idea has to make large AGR and spectrum related payments from FY 2026. On the other hand, the government also has the option of converting some of the dues into equity. In such a situation, we estimate that ARPU (Average Revenue Per User) will increase by Rs 200-270 (about 120 to 150 percent). Goldman Sachs has said that the chances of becoming free cash flow positive by FY 2031 seem low. The company will have to increase ARPU by about 2.5 times by FY 2027.