Idea Vodafone Stock Prediction, Targets History & Analysis for NSE, BSE

Why is Idea Vodafone Share going to Explode on 18th March 2020??

Idea Vodafone has been one of the hottest stocks in March 2020 where it has already given more than 2X returns to investors who purchased it on a low of Rs 2.50. Corona Virus has stuck in many countries and global stock indices are going down. Markets are highly volatile and investors are moving their money to safer havens like gold and cash. At such a volatile market a stock giving 2X results is something not believable, So let's jump in and see what's going on with this stock. 

Current Price of Idea Vodafone and Historical Analysis

Idea Vodafone was a hot stock in 2015 and when it used to trade at 100 plus rupees in the past but things have been moving down the hill for idea Vodafone in the last 5 years. The Indian telecom industry has seen multiple changes in the last 5 years with the advent of Reliance Jio which has made the telecom sector highly competitive. Very low data rates have been a major challenge for the telecom industries and this has resulted in a major decline in their profits.
Consequent losses for Idea Vodafone and an outstanding payment of 53000 Cr to the department of telecommunication brought the fear of going out of business for Vodafone Airtel. This fear was also seen in the share price which dropped to a low of Rs 2.40 after which the news was out of idea Vodafone paying 2700 Cr as the first payment towards DOT.
Vodafone Idea has been positive since then and also launched its double data plan for customers which has infused a positive sentiment and trust in investors causing a hike in the share price.

So, Why is Idea Vodafone going to explode on 18th March

On 18th March 2020, the supreme court is going to make a decision on AGR (average gross revenue) reports and other taxes for the telecom industry. Vodafone Idea, Airtel and Jio have filed requests for an increase in data prices and appealed to adjust the AGR. The government has been open to the AGR appeal and looks positive in supporting the telecom industry which is a hugely positive signal.

Vodafone Idea has also filed its version of AGR which they show at 23000 Cr rather than the 53000 as imposed by the government. Idea Vodafone also made its second payment of 3650 Cr on 16th March 2020. All these positive signals are pointing towards a decision favorable to Vodafone Idea and this decision could cause a pump in Vodafone Idea price.

Vodafone Idea share predictions and recommendation

Looking at the current scenarios it looks like Vodafone Airtel will jump to 8.00-8.50 if the news is positive for them or a 7.00-7.50 if it is not so overwhelming. We are not financial advisors, we study markets and analyze them based on facts so don't consider this as financial advice. 

Our recommendation for Idea Vodafone will be as the telecom industry is not doing too well in the country the share looks to remain in a bearish zone. Until you see a huge spike in data charges in India it will be hard for Idea Vodafone to make considerable profits. An appeal against this has been made to the court so if the prices get hiked up the share can come out of the bearish zone.

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Read my Blog on Yes Bank price prediction.

Why people think Fall of Yes Bank is the Best Investment Opportunity of 2020

Find out! Why Yes Bank can be the biggest Multi Bagger of 2020 

Yes bank has been in the headlines since on March 5 when RBI placed a moratorium on the bank and superseded the board. RBI had to take such a move as Yes bank was unable to infuse capital in the bank from investors and this could have resulted in a possible shutdown. Withdrawal limit of 50,000 max was put on savings and current accounts which got people rushing towards the bank.

Despite all the bad which was happening to Yes bank, the government told that SBI will be buying a stake in Yes bank and will play a major role in a revival of the bank. This news made a lot of rounds and it was in no time the share jumped to a close of 16Rs with a low of Rs 5 on the same day.

So What is Yes Bank Reconstruction Scheme

According to the Yes Bank reconstruction scheme, SBI along with some other investors would be infusing some amount in the bank where SBI will play the role of major investor and has to hold at least 26% shares for a period of 3 years. Other investors will need to hold a minimum of 75% percent shares for a period of 3 years which is also the lockdown period for them.

So who all are the investors for Yes bank reconstruction scheme

SBI ( Primary Investor ) - 725 Cr Share - Capital 7250 Cr

 Axis Bank - 60 Cr Share - Capital - 600 Cr

ICICI Bank - 100 Cr Share - Capital - 1000 Cr

HDFC - 100 Cr Share - Capital - 1000 Cr

Kotak Bank - 50 Cr Share - 500 Cr

Bandhan Bank - 30 Cr Share - 300 Cr 

A total of 10650 Cr will be infused in Yes bank at a price of 10Rs per share for Investors.

The current price of Yes Bank share stands at Rs 25.55 at the time of writing of this article so the question stands is Yes bank a multi-bagger at this price. 

Yes bank has a lot of bad debts but with SBI and other banks coming in the race and acquiring shares in Yes bank good results can be expected from Yes bank in the future. Yes banks price has increased 300% from its low of Rs 5 and looks like a good contender for the race of best multi-bagger of 2020.

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