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Fundamentals for Vodafone Idea Limited
Business Operations:
Sector: Communication ServicesIndustry: Telecom Services
Vodafone Idea Limited provides mobile telecommunication services in India. The company provides voice and data services on 4G VoLTE and Voice over WIFI calling services; broadband data services on 3G and/or 4G platforms; content and digital products and services; and other value-added services, including entertainment, utility, and voice and short messaging services. It offers long distance and ISP services; manpower services; business and enterprise services; and business connectivity services, such as IoT, cloud, managed services, etc. In addition, the company trades in mobile handsets, data cards, and related accessories and services; and rents passive infrastructure to telecommunication service providers. Further, it offers technology, software, hardware, VAS, application software, and contents and related products and services, which facilitate and develop access to information technology (IT) enabled VAS products and services on single or multiple platforms or operating systems; and data centre related services and IT solutions, including E-SIMs, as well as involved in the prepaid payment instrument; business correspondence; and mobile wallet and money transfer businesses. The company was formerly known as Idea Cellular Limited and changed its name to Vodafone Idea Limited in August 2018. Vodafone Idea Limited was incorporated in 1995 and is based in Mumbai, India.
Revenue projections:
Investors are expected to be cautious with IDEA, as its revenues are projected to fall compared to last year. A decline in revenue often results in a negative impact on profitability, prompting concerns about the company's financial stability and making investors more conservative in their approach.
Financial Ratios:
| currentRatio | 0.551000 |
|---|---|
| forwardPE | -9.295217 |
| debtToEquity | 0.000000 |
| earningsGrowth | 0.000000 |
| revenueGrowth | 0.032000 |
| grossMargins | 0.445600 |
| operatingMargins | -0.058210 |
| trailingEps | 3.210000 |
| forwardEps | -1.511530 |
IDEA's current ratio of 0.551 indicates that the company may struggle to cover its short-term debt with existing cash reserves and current assets. This could signal potential liquidity issues, raising concerns about IDEA's ability to meet its immediate financial obligations.
With forward EPS less than trailing EPS, Vodafone Idea Limited is expected to see reduced earnings. This suggests the company may face profitability challenges in the current financial year compared to the previous one.
Price projections:
The price of IDEA has remained consistently close to the lower limit of projections. This ongoing pattern raises concerns about the stock's performance and may reflect market hesitance regarding the company's growth prospects.
Recommendation changes over time:
The analysts' sell bias for IDEA suggests caution for investors, but it's essential to make decisions based on a wide array of market indicators. This approach ensures a comprehensive view of IDEA's position, helping to navigate any potential risks more effectively.
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