Vodafone Idea Shares Jump 10% on AGR Relief, Emkay Still Sees 44% Downside

• Vodafone Idea (Vi) shares surged 10% after Cabinet approved a 5-year moratorium on its Adjusted Gross Revenue (AGR) dues.
• A DoT committee will re-evaluate Vi's AGR dues, potentially reversing interest and penalties, with Rs 87,695 crore frozen and rescheduled for FY32-FY41.
• Vi is set to receive Rs 5,836 crore from Vodafone Group, including Rs 2,307 crore over 12 months and 328 crore shares.
• Emkay Research reiterated its 'Sell' rating on Vi, setting a target price of Rs 6, implying a 44% downside from current levels.
• Emkay cites high leverage, expensive valuations, and lack of clarity on spectrum debt as reasons for its bearish outlook despite government relief.

Why It Matters: Vi sees temporary relief from AGR dues and funding, but Emkay warns of significant downside due to high debt.