Check Before You Invest : Vodafone Idea Ltd

Snapshot

Q.1 Which industry/sub-sector does Vodafone Idea Ltd belong to?

Vodafone Idea Ltd belongs to the Telecom sector, operating specifically within the Telecommunication - Service Provider segment.

Q.2 Is Vodafone Idea Ltd a good quality company?

Vodafone Idea Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Vodafone Idea Ltd undervalued or overvalued?

Vodafone Idea Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Vodafone Idea Ltd a good buy now?

Vodafone Idea Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Vodafone Idea Ltd?

Vodafone Idea Ltd revenue growth is 2.2% for FY-2025, which is above its 5-year CAGR of -0.62%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Vodafone Idea Ltd?

Vodafone Idea Ltd Return on capital employed is -2.46% for FY-2025, which is above its 5-year historical median of -4.63%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.3 Return on Asset of Vodafone Idea Ltd?

Vodafone Idea Ltd Return on Asset is -14.31%, which is in line with its 5-year historical median of -14.6%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Vodafone Idea Ltd?

Vodafone Idea Ltd Return on equity is 0% for FY-2025, which is above its 5-year historical median of -16.1%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Vodafone Idea Ltd?

Vodafone Idea Ltd Cash conversion cycle is -77 days, above its 5-year historical median of -82 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.23	0.21
ROE	-	-16.1
ROCE	-2.46	-4.63
Cash Conversion Cycle	-77 days	-82 days

Q.6 Gross Profit margin of Vodafone Idea Ltd?

Vodafone Idea Ltd Gross profit margin which is the profit after deduction of direct costs, is -12.4% for FY-2025, which is in line with its 5-year median of -12.5%, indicating stable margins.

Q.7 Operating Profit Margin of Vodafone Idea Ltd?

Vodafone Idea Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 41.31% for FY-2025, which is in line with its 5-year median of 40.29% indicating stable margins.

Q.8 Net Profit Margin of Vodafone Idea Ltd?

Vodafone Idea Ltd Net Profit Margin is -62.85% for FY-2025, is above with its 5-year median of -73.24%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-12.4	-12.5
Operating Profit Margin	41.31	40.29
Net Profit Margin	-62.85	-73.24

Q.9 Debt to Equity ratio of Vodafone Idea Ltd?

Vodafone Idea Ltd Debt-to-Equity ratio is -1.83, which is lower with the industry average of 0.22, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Vodafone Idea Ltd?

Vodafone Idea Ltd Debt to cash flow from operations is 21.13, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Vodafone Idea Ltd?

Promoters hold 25.64% of the Vodafone Idea Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Vodafone Idea Ltd vs industry peers?

Vodafone Idea Ltd revenue CAGR is -0.62%, compared to the industry median CAGR of 15.36%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	2.2	15.4
Gross Profit Growth	0	27.4
Operating Profit Growth	5.7	22.1
Net Profit Growth	0	41.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.23	0.35
ROE	-	19.17
ROCE	-2.46	14.99
Cash Conversion Cycle (days)	-76.67	-82

Valuation & price assessment

Q.1 Stock return of Vodafone Idea Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -16.9% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-16.9%	5.3%	16.1%	51.6%

Q.3 Valuation ratios of Vodafone Idea Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	-	19.31
Price to Book	-1.3	-0.79	0.68
Price to Sales	2.57	1.59	2.17
EV to EBITDA	15.74	14.76	12.27

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