Shares of Vodafone Idea Ltd slipped on Tuesday after analysts raised concerns over the company’s planned ₹45,000-crore investment over the next three to four years, saying the amount may not be enough to meaningfully improve its competitive position. According to a note by HSBC Global Investment Research, the proposed spending is significantly lower than the expected ₹1.2–1.4 trillion investment by rivals Reliance Jio and Bharti Airtel over a similar period. The brokerage said the funding gap could make it difficult for Vodafone Idea to expand coverage, strengthen its 5G rollout, and regain market share.
Over the past few years as well, Jio and Airtel have outpaced Vodafone Idea in network investments, widening the competitive gap in India’s telecom sector. Investors reacted cautiously to the outlook, pushing the stock lower in trade.“Additionally, Vi would also have spectrum renewals starting from 2030 which would entail additional capital investment. Thus, we think VI remains strategically aligned with other industry players to improve data monetisation and raise tariffs,” HSBC said in the report.Historical data shows, that Voda Idea stock has shed 15.1 per cent from its December high of ₹12.80.
Technical analysts highlight that the stock seems to be in consolidate mode and has been facing consistently resistance in the ₹12 - ₹13 zone. "Vodafone Idea has been consolidating around the ₹12 mark for the past three months, reflecting persistent supply in the ₹12–₹13 zone. The stock has repeatedly faced rejection near this band, indicating overhead resistance and on-going profit booking," says Hitesh Tailor, Technical Research Analyst at Choice Equity Broking.