Vodafone Idea a turnaround play? Why Jefferies sees tariff hikes unlocking 30% upside

Vodafone Idea (VIL) has been struggling with falling subscribers and mounting losses for years. But global brokerage Jefferies now sees the tide turning. It has initiated coverage on the stock with a ‘Buy’ rating and a price target of Rs 20. This implies an upside of nearly 30% from current levels.

Jefferies is betting on three things coming together. This includes – stabilising subscribers, higher tariffs and strong operating leverage. At the same time, the brokerage has flagged funding and execution risks.

Let’s take a look at what the brokerage house is saying about this telecom sector stock and the rationale behind it –