Vodafone Idea Share Price Falls 10% After SC Order Limits AGR Relief; Should You Hold or Sell VI Stock?

Shares of Vodafone Idea Ltd came under pressure on October 30, declining nearly 10% on Thursday, October 30, after the Supreme Court's written judgment on the telecom company's additional adjusted gross revenue (AGR) dues stirred fresh uncertainty among investors and analysts.

Vodafone Idea Share Price Today

Shares of Vodafone Idea Ltd hit an intraday low of Rs 8.21, compared to the previous close of Rs 9.36. The stock opened at Rs 9.25 and touched a high of Rs 9.26 in early trade before slipping sharply. At 11:31 a.m., Vodafone Idea shares were trading at Rs 8.81, down Rs 0.55 or 5.88% for the day.

At its intraday low of Rs 8.21, the stock was down almost 22% from its 52-week high of Rs 10.57, though it remains about 34% above its 52-week low of Rs 6.12. The sharp decline followed the Supreme Court's written order on Vodafone Idea's adjusted gross revenue (AGR) dues, which created uncertainty regarding the extent of relief available to the telecom operator.

Vodafone Idea AGR Case: SC Says Relief Limited to Vi Due to 'Peculiar Circumstances'

Earlier this week, on Monday, October 27, the Supreme Court had allowed the Central Government to reconsider Vodafone Idea's AGR dues, a decision that initially lifted investor sentiment. However, the written order released on Thursday clarified that the ruling applies only to Vodafone Idea, citing the "peculiar facts and circumstances" of the case.

According to the order, the Supreme Court's direction pertains solely to Vodafone Idea's additional AGR demand of Rs 9,450 crore, explicitly limiting its scope. The judgment does not make any reference to the company's earlier plea seeking waiver of penalty interest and interest on penalty dues, which indicates that the apex court's consideration was confined only to the reassessment of the additional amount and not the broader AGR liability.

Should You Hold or Sell Vodafone Idea Stock? Emkay Global Retains Cautious View

Following the release of the written order, brokerage firms expressed concern over the limited clarity in the Supreme Court's language. Emkay Global Financial Services maintained its 'Sell' rating on Vodafone Idea, citing the telecom operator's high leverage, mounting debt obligations, and persistent operational challenges.

The brokerage said that although the Supreme Court's decision allows for some potential relief and revival prospects, the stock continues to face valuation risks and uncertainty around the government's stance on spectrum-related debt.

Emkay Global has set a target price of Rs 6 for Vodafone Idea shares, indicating limited upside potential in the near term.

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