Many investors want to invest in penny stocks like Vodafone Idea and Reliance Communications (R-Com). So this article is for all those investors who want to invest in penny stocks. Today we will try to know whether we should invest in such penny stocks or not.
But before that, we will try to know what can be the price target of Vodafone Idea in 2021, 2022, 2025, and 2030. As you already know that the company is also struggling for survival right now. In such a situation, it is useless to expect more from the stock. Since Jio has entered the market, many telecom companies have suffered losses. And now only 4 telecom companies are left in the Indian market. Below I am telling the names of all the telecom companies.
- Relaince Jio
- Vodafone Idea
And out of these Jio and Airtel are doing well and Vodafone Idea and BSNL are struggling to survive. In such a situation, BSNL is a government company and the government is helping to save it. But Vodafone Idea is a private company that has a debt of thousands of crores. And the debt which the company appears to be unable to pay. In such a situation, if the company is declared bankrupt, then all the money of the investors will be lost.
Is Vodafone Idea a good investmnet?
Although I do not recommend investing in Vodafone Idea, I know that many retail investors’ money is stuck in this stock. Many of you have bought Vodafone Idea shares at very high rates. So in such a situation, you do not want to sell these shares at a loss. We will also tell you about this. But first, let us know that the share of Vodafone Idea sometimes jumps well and sometimes there is a significant drop in it, why does this happen.
Just a few days ago, there was good news for Vodafone Idea from TRAI that for the first time in the last 15 months, new users were added to Vodafone Idea. And after 15 months, about 0.65 million users have been added to the company. So this is a good sign. Although this is good news we should also see that Vodafone Idea users were continuously losing for the last 15 months. Due to this news, there was also a huge jump of 13% in the stock of Vodafone Idea.
You know that after 15 months, Vodafone Idea has 1 million users added. But you should also know how many users have left Vodafone Idea. So according to TRAI, Vodafone Idea has lost about 57.7 million users in the last 15 months. If we talk about the experts, then the Brokerage firm Goldman Sachs believes that the performance of Jio and Virtual is going to be good in the coming years. So we can say that there are only two giants left in the telecom sector and they are Airtel and Jio.
Vodafone Idea share price target in 2021
The Vodafone Idea company has a debt of thousands of crores. And they have to pay off the loan of 2800 crores every year. But if we talk about the earnings of Vodafone Idea, then the company’s earnings are about 700 crores every year. So in such a situation, you cannot expect much return from Vodafone Idea stock. So I think the next target of Vodafone idea stock at the end of 2021 is 8 INR. The current price of Vodafone Idea stock is 6.80 INR. And today the stock price is seeing a fall of about -0.72%. By the way, if you have not invested in this stock yet, then this is a good thing. But I never recommend investing in such stocks. Yes, if you are interested in investing in this stock, then you can invest a small amount in this stock.
Perhaps you must have known about Brokerage Emkay Global Rating Agency. This is a very big international brokerage rating firm. And according to Emkay Global Rating Agency, the share of Vodafone Idea can be around INR 5 in the coming year or 2021 – 2022. It is not that the rating agency’s targets are always right. Sometimes these goals can also prove to be wrong.
Vodafone Idea share price target in 2022 and 2023
Many brokerage companies have given negative ratings to Vodafone Idea stock till now. And still, they believe that you should not invest in this stock. And if you have Vodafone Idea stock then you should sell that stock in some profit. So the next target of Vodafone idea stock in 2022 is INR 10. Price can be more or less. If the company gets bankrupted, then the share price of Vodafone Idea can be zero.
And if the company launches good plans and is successful in winning the trust of the users, then the share price can be more than 10 rupees. If we talk about 2023, then by 2023 the share price of Vodafone Idea can reach 13 INR. But as I have mentioned earlier that this is just an estimate, it is very difficult to predict the price of such companies. Right now we do not even know whether the company will be able to survive till 2023 or will close its business from India before that. That is why before taking any decision, do think once.
Vodafone Idea share price target in 2025
If Vodafone Idea survives by 2025, it will mean that new users are joining the company. And the company is earning good profit. In such a situation, the share price target of Vodafone Idea can be 20 in 2025. And if the company closes its business from India before this, then the stock price will be 0. Many people will not know that if any company is declared bankruptcy, then its shares are delisted from the share market. In such a situation, neither you can buy nor sell shares from that company. If Vodafone Idea gets delisted from the market then the value of your shares will be zero. That is why you should not invest in such companies in long term. Yes, you can invest a small amount in shares to earn profit or to learn something new in the stock market.
Vodafone Idea share price target in 2030
If Vodafone Idea survives by 2030, it will mean that the company is doing good work and will continue to do so in the future. So the next target for Vodafone Idea share in 2030 is 30 INR. But if the company is not able to survive then you will not see this stock in NSE or BSE. If I can tell my point, I am a trader as well as an investor. But I never invest in penny stocks for the long term. Yes, you can make money in trading. For the long term, you should invest in such stocks which are fundamentally strong. And Vodafone Idea is not a fundamentally strong company.
Vodafone Idea survival plan in 2021
Now let’s talk about what is the survival plan of the Vodafone Idea. So as far as I know Vodafone Idea is planning to raise a fund of 25000 crores in September 2021. But the company may have to face many troubles to raise 2500 crores. The confidence of the Investors has been raised from the top of the company and how the company will be able to raise the fund of 25000 crores, it can be known only in the coming time. But if the company is successful in raising funds, then its effect can be seen on the price of the shares and there can be a sudden jump in the price of the shares. So if you want to invest or have already invested in Vodafone Idea, then you should keep an eye on the share price in the month of September.
Now we check the balance sheet of the company so that we will know how much Vodafone Idea is in the loss.
So as you must be seeing that the more the company has total assets, the more the company has debt. And the debt of the company is increasing continuously. In such a situation, it is finding it very difficult to survive the company. But if the company raises 25000 crore funds, then its effect can be seen.
Should I invest in Vodafone Idea Share?
If Vodafone Idea is successful in raising funds then you can expect a 10% return from the company in the short term. But the company already has a debt and the company is taking more loans to repay that debt. In such a situation, you can know for yourself how the future of the company will be. If you are a prudent investor then you would not invest much amount in such stocks. Yes, you can trade in the shares of this company and earn good profits.
Because as soon as there is any good news to be seen, then the price of the share increases immediately and as soon as some bad news is received, there is a tremendous drop in the share price of the company. And this keeps happening with penny stocks. That is why they are also called risky stocks.
So in this way we have tried to tell the target price of Vodafone Idea share. And from our side, we have tried our best not to miss any important information. But still, if any information has been missed then you can ask us through comments. We will do our best to assist you and try to answer your questions as quickly as possible.