'Only those who can risk ...': What Kush Ghodasara says on Vodafone Idea shares post 22% plunge

As shares of Vodafone Idea Ltd shares logged a steep single-day correction on Thursday, a market expert -- who himself is holding VIL stock in his portfolio -- suggested that investors with a very high-risk appetite should only consider this as an 'opportunity' to enter.

"As a disclosure, I've Vodafone Idea in my portfolio and I'm still holding on to it. Today's news on AGR (adjusted gross revenue) matter is definitely upsetting for the telecom sector. But, I believe that it is a good risky bet yet ... because we are not seeing VIL going out of the telecom business, given the government shareholding. But it will take time to turn things around. Only those who can risk their capital can consider entering the VIL counter at current levels as an opportunity, keeping a stop loss of Rs 8," market expert Kush Ghodasara told Business Today TV.

Separately, a few other analysts cautioned market participants that the stock looked 'weak' on daily charts and could slip further. "The stock has broken its previous massive support zone of Rs 12. There can be a further downside in the near term. I would suggest that it is better to take an exit and move to another stock. Even if it does not go down from here, it is not going to do much good in the medium to long term. As of now, exit is the best strategy," said Akshay Bhagwat, Senior Vice-President of Derivatives Research at JM Financial Services.

"The stock witnessed a breakdown on daily charts as it plunged below the previous swing low of Rs 12.5-12. The short-term view seems disruptive as it may plunge further. On the level-specific front, the intermediate support is placed around the Rs 10-9.50 zone. On the flipside, a series of resilience could be seen at 12.50-13.50 levels in the comparable period," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"Vodafone Idea looked weak on daily charts can slip towards Rs 8 level in the short term. Resistance will now be seen at Rs 12," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

The Supreme Court today dismissed petitions filed by telecom companies, including VIL, to re-compute adjusted gross revenue (AGR) dues. Earlier, VIL reported an AGR liability of about Rs 70,300 crore, inclusive of accumulated interest. The operator's self-assessed AGR liability was 50 per cent lower at Rs 35,400 crore.

VIL shares cracked 22.15 per cent to hit their one-year low value of Rs 10.05. The stock eventually settled 19.60 per cent lower at Rs 10.38. At this price, it has declined 38.91 per cent on a year-to-date (YTD) basis.

As of July 19, 2024, promoters held a 37.17 per cent stake in the telco and the government's shareholding was at 23.15 per cent.