Vodafone Idea Share Price Falls After Goldman Sachs Sees 56% Downside

Shares of Vodafone Idea Ltd came under pressure in Thursday’s trade after a report by Zee Business said that global brokerage Goldman Sachs has maintained a ‘sell’ rating on the stock, while raising its target price to ₹5 per share, implying a potential downside of nearly 56 per cent from current levels. The stock ended the session 0.70 per cent lower at ₹11.33 on the BSE. According to the report, although Goldman Sachs doubled its target from ₹2.5 to ₹5, it remains cautious on the company’s outlook, citing high spectrum liabilities, weak balance sheet, and intense competition in the telecom sector.

In a separate regulatory development, Vodafone Idea has received an order from the Telecom Regulatory Authority of India (TRAI) imposing a financial disincentive of ₹8 lakh for failing to meet specific quality-of-service benchmarks for access and broadband services as mandated under the 2024 regulations. The company said it is reviewing the order and assessing its implications, while considering the next course of action. Vodafone Idea added that it acknowledges the importance of maintaining service quality standards and is taking necessary measures to improve its performance.

Despite Thursday’s decline, Vodafone Idea shares have delivered strong recent gains, rising 12.4 per cent in the past five sessions, 65 per cent over the last six months, and around 20 per cent over the past year, driven largely by optimism around fundraising plans and regulatory relief.