Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 18 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532822 | NSE: IDEA

Vodafone Idea Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 7:27 pm

Market Cap 51,160 Cr.
Current Price 7.34
High / Low19.2/7.32
Stock P/E
Book Value 13.7
Dividend Yield0.00 %
ROCE3.61 %
ROE%
Face Value 10.0
PEG Ratio0.00

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Vodafone Idea Ltd

Competitors of Vodafone Idea Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
City Online Services Ltd 3.53 Cr. 6.836.87/3.2210.4 0.560.00 %24.4 %% 10.0
Cistro Telelink Ltd 3.75 Cr. 0.730.73/0.56 0.550.00 %0.54 %0.54 % 1.00
Vodafone Idea Ltd 51,160 Cr. 7.3419.2/7.32 13.70.00 %3.61 %% 10.0
Uniinfo Telecom Services Ltd 34.6 Cr. 32.457.0/26.0 30.70.00 %2.87 %1.89 % 10.0
Tejas Networks Ltd 21,712 Cr. 1,2681,495/65147.8 2170.00 %3.68 %2.06 % 10.0
Industry Average167,391.17 Cr302.3541.20123.050.05%7.08%3.94%8.10

All Competitor Stocks of Vodafone Idea Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales9,6089,1529,4069,71710,24010,41010,61510,62110,53210,65610,71610,67310,607
Expenses5,1995,4455,5445,9015,5906,0826,5176,4406,3226,4996,4356,3246,274
Operating Profit4,4083,7083,8633,8164,6494,3284,0974,1814,2104,1564,2824,3494,333
OPM %46%41%41%39%45%42%39%39%40%39%40%41%41%
Other Income-93421243211984963871213478032
Interest4,7075,2285,1115,3255,3165,9016,1296,3235,0026,3986,5696,5186,280
Depreciation5,8106,0105,9235,7395,9135,8045,6565,8865,7045,6165,6675,5985,751
Profit before tax-7,042-7,319-7,128-7,226-6,561-7,293-7,591-7,990-6,424-7,837-7,920-6,987-7,666
Tax %-0%0%0%0%0%0%0%0%-0%0%10%-0%0%
Net Profit-7,023-7,319-7,132-7,231-6,563-7,297-7,596-7,990-6,419-7,840-8,738-6,986-7,675
EPS in Rs-2.44-2.55-2.48-2.52-2.04-2.27-2.36-2.49-1.32-1.61-1.79-1.44-1.53

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales22,40726,51931,57135,94935,57628,27937,09244,95841,95238,51642,17742,65242,504
Expenses16,43918,23720,77124,28125,34822,22432,97630,04225,00622,54725,42425,58025,336
Operating Profit5,9698,28210,80011,66810,2276,0544,11614,91616,94615,96816,75317,07217,169
OPM %27%31%34%32%29%21%11%33%40%41%40%40%40%
Other Income1312474976417467031,789-36,964-19,5633633549171,104
Interest1,0459661,0601,8034,0104,8479,54515,39317,99820,98123,35425,76624,886
Depreciation3,4784,5195,3046,2567,8278,40914,53624,35623,63823,58423,05022,63422,386
Profit before tax1,5773,0444,9334,250-863-6,499-18,175-61,797-44,253-28,234-29,298-30,410-28,999
Tax %36%35%35%36%-54%-36%-20%20%-0%0%0%3%
Net Profit1,0111,9683,1932,728-400-4,168-14,604-73,878-44,233-28,245-29,301-31,238-29,830
EPS in Rs0.931.802.702.30-0.34-2.91-5.08-25.71-15.39-8.79-6.02-6.23-5.71
Dividend Payout %10%7%7%8%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)94.66%62.25%-14.56%-114.66%-942.00%-250.38%-405.88%40.13%36.14%-3.74%-6.61%
Change in YoY Net Profit Growth (%)0.00%-32.41%-76.81%-100.10%-827.34%691.62%-155.49%446.00%-3.98%-39.88%-2.87%

Vodafone Idea Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:5%
5 Years:3%
3 Years:1%
TTM:0%
Compounded Profit Growth
10 Years:%
5 Years:-56%
3 Years:-12%
TTM:6%
Stock Price CAGR
10 Years:-23%
5 Years:1%
3 Years:-10%
1 Year:-50%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:34 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital3,3143,3203,5983,6013,6054,3598,73628,73528,73532,11948,68050,12069,700
Reserves10,98913,20519,42919,95021,12722,90350,899-22,756-66,963-94,084-123,039-154,287-165,096
Borrowings14,04620,63726,85940,54155,05557,985125,940114,996201,720213,761237,766243,809250,167
Other Liabilities8,0299,39610,58016,03416,88113,26444,078105,94239,98642,23343,83645,35542,226
Total Liabilities36,37846,55760,46780,12696,66898,511229,652226,918203,478194,029207,243184,997196,997
Fixed Assets29,16029,60235,54065,19076,76379,692177,800185,836167,490156,819156,255140,125155,055
CWIP88111,4195,1416,0407,5353,5855,1031,13860636417,87618,189808
Investments1,02821611,5273,4716,3787,2908,2391,9794560417
Other Assets5,3095,3218,2605,4255,9917,94438,51137,96435,37836,84133,10526,68340,717
Total Assets36,37846,55760,46780,12696,66898,511229,652226,918203,478194,029207,243184,997196,997

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +6,2978,21910,41810,94910,4765,3325,3487,32815,64017,38718,86920,826
Cash from Investing Activity +-3,411-6,565-5,726-2,389-15,556-9,303-1,640-2,6981,075-5,730-5,414-1,907
Cash from Financing Activity +-1,965-2,4668,028-9,3304,5063,925-2,949-5,019-16,731-10,554-14,680-18,980
Net Cash Flow921-81112,720-770-574-46758-389-171,103-1,224-61

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-9.00-12.00-16.00-29.00-45.00-51.00-121.00-100.00-185.00-198.00-221.00-226.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days161111121311322522231919
Inventory Days
Days Payable
Cash Conversion Cycle161111121311322522231919
Working Capital Days-89-82-171-117-148-91-389-667-184-203-204-216
ROCE %10%12%14%11%4%-2%-8%-5%-4%-5%-4%-4%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Jul 2024
Promoters72.05%74.99%74.99%74.99%74.99%50.36%50.36%50.36%50.36%48.91%38.17%37.18%
FIIs4.20%3.57%3.48%3.53%3.59%2.28%2.29%2.46%2.27%1.97%12.67%12.78%
DIIs1.37%1.71%1.56%0.62%1.21%0.54%0.73%1.80%3.05%2.20%7.44%6.95%
Government0.00%0.00%0.00%0.06%0.06%33.18%33.18%33.18%33.18%32.23%23.80%23.18%
Public22.38%19.72%19.97%20.80%20.14%13.64%13.44%12.19%11.14%14.69%17.89%19.91%
No. of Shareholders21,47,65326,85,98728,22,60329,21,87129,68,30831,38,33831,88,35631,04,41031,24,12836,79,06147,58,35449,86,871

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Invesco India Arbitrage Fund182,880,0002.46292.61134,880,0002024-11-1635.59%
SBI Arbitrage Opportunities Fund190,800,0001.03273.8134,880,0002024-11-1641.46%
Nippon India Arbitrage Fund134,880,0001.48193.55134,880,0002024-11-160%
Edelweiss Arbitrage Fund86,560,0001.53124.21134,880,0002024-11-16-35.82%
UTI Arbitrage Fund57,280,0001.8482.2134,880,0002024-11-16-57.53%
Axis Arbitrage Fund46,880,0001.7667.27134,880,0002024-11-16-65.24%
HSBC Arbitrage Fund18,400,0001.2826.4134,880,0002024-11-16-86.36%
DSP Arbitrage Fund14,160,0000.5420.32134,880,0002024-11-16-89.5%
SBI Equity Savings Fund9,600,0000.3513.78134,880,0002024-11-16-92.88%
DSP Equity Savings Fund5,280,0000.957.58134,880,0002024-11-16-96.09%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-6.41-8.43-9.83-15.40-27.26
Diluted EPS (Rs.)-6.41-8.43-9.83-15.40-27.26
Cash EPS (Rs.)-1.72-1.28-1.45-7.25-17.36
Book Value[Excl.RevalReserv]/Share (Rs.)-20.78-15.28-19.29-13.302.08
Book Value[Incl.RevalReserv]/Share (Rs.)-20.78-15.28-19.29-13.302.08
Revenue From Operations / Share (Rs.)8.498.6611.9914.6015.65
PBDIT / Share (Rs.)3.443.525.035.965.55
PBIT / Share (Rs.)-1.08-1.22-2.31-2.27-2.92
PBT / Share (Rs.)-6.07-6.02-8.79-15.48-21.63
Net Profit / Share (Rs.)-6.23-6.02-8.79-15.47-25.83
NP After MI And SOA / Share (Rs.)-6.23-6.02-8.79-15.39-25.71
PBDIT Margin (%)40.5140.6141.9740.8035.48
PBIT Margin (%)-12.67-14.03-19.26-15.53-18.69
PBT Margin (%)-71.44-69.46-73.30-106.03-138.24
Net Profit Margin (%)-73.39-69.47-73.33-105.98-165.11
NP After MI And SOA Margin (%)-73.40-69.47-73.33-105.43-164.32
Return on Networth / Equity (%)0.000.000.000.00-1235.44
Return on Capital Employeed (%)-4.12-4.02-5.58-4.75-6.40
Return On Assets (%)-16.88-14.13-14.55-21.73-32.55
Long Term Debt / Equity (X)-1.95-0.01-2.84-4.1216.10
Total Debt / Equity (X)-1.99-0.17-3.08-4.1216.11
Asset Turnover Ratio (%)0.210.200.190.190.19
Current Ratio (X)0.230.230.270.210.17
Quick Ratio (X)0.230.230.270.210.17
Inventory Turnover Ratio (X)1.780.000.000.000.00
Interest Coverage Ratio (X)0.660.730.770.951.04
Interest Coverage Ratio (Post Tax) (X)-0.24-0.25-0.35-0.36-1.33
Enterprise Value (Cr.)273452.2240707.19218512.10181779.25102586.31
EV / Net Operating Revenue (X)6.430.965.674.332.28
EV / EBITDA (X)15.862.3813.5210.626.43
MarketCap / Net Operating Revenue (X)1.560.670.800.630.19
Price / BV (X)-0.63-0.38-0.50-0.691.49
Price / Net Operating Revenue (X)1.560.670.800.630.19
EarningsYield-0.47-1.03-0.90-1.66-8.27

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Vodafone Idea Ltd as of November 18, 2024 is: 31.44

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 18, 2024, Vodafone Idea Ltd is Undervalued by 328.34% compared to the current share price 7.34

Default values used*: Default value of 15 for Stock P/E is used, Default value of 15% for ROE is used

Intrinsic Value of Vodafone Idea Ltd as of November 18, 2024 is: 50.49

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 18, 2024, Vodafone Idea Ltd is Undervalued by 587.87% compared to the current share price 7.34

Default values used*: Default value of 15 for Stock P/E is used, Default value of 15% for ROE is used

Last 5 Year EPS CAGR: 60.59%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -213.42, which is a positive sign.
  1. The stock has a low average ROCE of 1.58%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 17.83, which may not be favorable.
  3. The company has higher borrowings (123,329.38) compared to reserves (-35,978.69), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (35.62) and profit (-84.23).

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Vodafone Idea Ltd:
    1. Net Profit Margin: -73.39%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: -4.12% (Industry Average ROCE: 7.08%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 0% (Industry Average ROE: 3.94%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): -0.24
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.23
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 0 (Industry average Stock P/E: 41.2)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: -1.99
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Vodafone Idea Ltd. is a Public Limited Listed company incorporated on 14/03/1995 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L32100GJ1996PLC030976 and registration number is 030976. Currently Company is involved in the business activities of Telecommunications. Company’s Total Operating Revenue is Rs. 38220.70 Cr. and Equity Capital is Rs. 32118.80 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Telecom ServicesSuman Tower, Plot No. 18, Gandhinagar Gujarat 382011shs@vodafoneidea.com
https://www.myvi.in
Management
NamePosition Held
Mr. Ravinder TakkarNon Executive Chairman
Mr. Himanshu KapaniaNon Executive Director
Mr. Sunil SoodNon Executive Director
Mr. Sushil AgarwalNon Executive Director
Mr. Sateesh KamathNon Executive Director
Mr. Kumar Mangalam BirlaNon Executive Director
Mr. Anjani AgrawalIndependent Director
Mr. Arun AdhikariIndependent Director
Mr. Ashwani WindlassIndependent Director
Ms. Neena GuptaIndependent Director
Mr. Krishnan RamachandranIndependent Director
Mr. Suresh VaswaniIndependent Director

FAQ

What is the latest intrinsic value of Vodafone Idea Ltd?

The latest intrinsic value of Vodafone Idea Ltd as on 17 November 2024 is ₹31.44, which is 328.34% higher than the current market price of ₹7.34.

What is the Market Cap of Vodafone Idea Ltd?

The Market Cap of Vodafone Idea Ltd is 51,160 Cr..

What is the current Stock Price of Vodafone Idea Ltd as on 17 November 2024?

The current stock price of Vodafone Idea Ltd as on 17 November 2024 is ₹7.34.

What is the High / Low of Vodafone Idea Ltd stocks in FY 2024?

In FY 2024, the High / Low of Vodafone Idea Ltd stocks is 19.2/7.32.

What is the Stock P/E of Vodafone Idea Ltd?

The Stock P/E of Vodafone Idea Ltd is .

What is the Book Value of Vodafone Idea Ltd?

The Book Value of Vodafone Idea Ltd is 13.7.

What is the Dividend Yield of Vodafone Idea Ltd?

The Dividend Yield of Vodafone Idea Ltd is 0.00 %.

What is the ROCE of Vodafone Idea Ltd?

The ROCE of Vodafone Idea Ltd is 3.61 %.

What is the ROE of Vodafone Idea Ltd?

The ROE of Vodafone Idea Ltd is %.

What is the Face Value of Vodafone Idea Ltd?

The Face Value of Vodafone Idea Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Vodafone Idea Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE