Shares of Vodafone Idea slipped as much as 3.7% to an intraday low of Rs 13.03 even after the company’s promoter Kumar Mangalam Brila bought 1.86 crore shares on September 06.
Also, Pilani Investment bought 30 lakh shares on the same date.
The stock has been on a selling spree since September 06 after Goldman Sachs in its research report gave a “Sell” rating to the stock. It also said that it sees up to 83% downside in the stock price. It gave a price target of Rs 2.5 per equity share, up from the previous target price of Rs 2.2.
On that day, the stock of the company saw a fall of more than 11% due to the brokerage’s research report. It suggested a direct correlation between capex and revenue market share, and given the brokerage house’s expectations of peers spending at least 50% higher capex compared to Vodafone Idea, “we forecast another 300 bps share loss for the company over the next 3-4 years,” it said.
The stock of Vodafone Idea has fallen almost 12% in the last five days. It erased around 18% of investors’ wealth in the last one month. The stock has eroded a bit over 4% of its value in the last six months. Also, from year to date, the company’s stock has fallen more than 22%. Talking about the long term, the shares’ price has given a return of 144% in the past five years.
To compare, the benchmark Nifty 50 has fallen over 1% in the last five days but has risen more than 2% in the last one month.