Vodafone Idea (IDEA)

FairStock Score: 30/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Vodafone Idea as a Graham-style number cruncher, and the first thing I see is a contradiction. At ₹14.11 and ₹1.53 lakh Cr market cap, the screen says P/E 4.04, which looks cheap. But the latest quarter shows sales of ₹11,323 Cr and a net loss of ₹5,286 Cr, while free cash flow is negative ₹6,957 Cr. A low P/E means little when the business is losing money and burning cash. Book value is negative ₹3.30, so P/B is not meaningful. Debt/equity is -3.32, again distorted by negative equity. ROE of 26.13% may be an artifact of that negative book value, not a sign of prosperity. ROCE is -1.93%, meaning the capital employed is not earning a positive return. That fails my test for business quality. The moat, if any, is not visible in these numbers. Five-year revenue CAGR is -0.62%, so growth has been stagnant or shrinking. Recent sales growth of 6.10% and profit growth of 3.72% are modest and come against huge losses. EV/EBITDA of 546.76 is breathtaking, implying enterprise value is enormous relative to operating earnings. Altman Z-score of 0.54 is deep in distress territory. Piotroski F-score of 7/9 is a rare bright spot, hinting at some accounting improvement, but it cannot offset negative cash flow and negative book value. No dividend. Promoter holding is 25.57%. Valuation may look optically cheap on P/E, but without positive earnings, positive book value, or free cash flow, there is no margin of safety. This is a speculative turnaround, not a Buffett stalwart. I would watch the net loss, free cash flow, book value, and EV/EBITDA. Until those improve, I pass.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer