Shares of Vodafone Thought Ltd came beneath weight in Friday’s exchange after worldwide brokerage Goldman Sachs proposed a target of Rs 2.50 per share on the telecom stock, implying at a potential 83 per cent drawback ahead. To be beyond any doubt, Goldman Sachs had a target on Rs 2.20 per share on the stock prior and the new target is an upside amendment. In a blue-sky situation, where it expected 65 per cent lower AGR levy, steady duty increments and no near-term government reimbursements, Goldman Sachs sees an inferred esteem per share of Rs19 for Vodafone Thought, suggesting 26 per cent upside.

That said, Goldman Sachs’ base target has been most reduced among all later examiner proposals. Final week, another outside brokerage Citi kept up its ‘Buy’ rating on Vodafone Thought Ltd with a target cost of Rs 22.

Vodafone offers Thought fell 14.44 per cent to hit a moo of Rs 12.91 on BSE. The scrip is down 20 per cent year-to-date.

Goldman Sachs said the later capital raise, whereas incrementally positive, is impossible to be satisfactory to halt the company’s showcase share disintegration. Peers are investing at slightest 50 per cent higher capex that Vodafone Thought, Goldman Sachs said including that its examination recommended a coordinate relationship between capex and income advertise share. The brokerage sees another 300 premise focuses share misfortune for Vodafone Thought over the another 3-4 years.

“Additionally, Vodafone Thought has expansive AGR/spectrum related installments beginning in FY26; whereas the government has the alternative of changing over a few levy into value, we assess ARPUs would have to rise by Rs 200-270 (120-150 per cent beneath distinctive scenarios) vs Dec “24E levels for Vodafone Thought to be economically free cash stream impartial, a moo likelihood in the medium term in our see,” it said.

Excluding the affect from any such potential transformation, Goldman Sachs anticipates free cash stream (FCF) for Vodafone Thought to be negative at slightest until FY31. It anticipates Vodafone Idea’s net-debt-to-Ebitda will stay hoisted at 19 times by Walk 2025.

“We proceed to anticipate its adjust sheet to stay extended indeed after potential government change of near-term levy into value. Moreover, Vodafone ldea exchanges at 24 times FY26E EV/Ebitda, a sharp premium vs Bharti’s US trade at 12 times in spite of its weaker development and returns profile; we estimate mid-single digit CROCI for Vodafone Thought amid our figure period vs 17-18 per cent for Bharti/Jio,” Goldman Sachs said.