“Don’t invest based on court rulings; focus on fundamentals,” says Shah
Speaking to ET Now, Shah said investors must evaluate a company’s financial strength, technology capability, and market positioning before committing capital.
“You don’t invest in companies based on the outcome of courts. You invest based on fundamentals,” Shah emphasized, adding that Vodafone Idea’s debt burden and subscriber loss remain major concerns.
Vodafone Idea faces tech gap and subscriber loss
According to Shah, Vodafone Idea continues to lag in technology adoption and network upgrades, which has resulted in consistent subscriber erosion.
“Every month, Vodafone Idea is losing subscribers, and this is benefiting Bharti Airtel and Jio Mobility,” he said.The telecom operator’s heavy debt load also makes it less attractive from a long-term investment perspective, he added.
Bharti Airtel, Reliance Jio, and Tata Communications preferred in telecom space
Shah highlighted that Bharti Airtel and Reliance Industries (through Jio) remain the stronger investment options in India’s telecom sector due to their robust balance sheets, technological edge, and diversified business models.
He also pointed to Tata Communications and Bharti Hexacom as companies showing strong performance and sustainable growth.
“Bharti Hexacom, for instance, was listed around ₹700 and is now trading near ₹1,840. These are the kind of companies investors should look at,” Shah said.
Verdict offers clarity, but fundamentals still rule
While the Supreme Court’s clarity on Vodafone Idea’s dues has provided a legal resolution, Shah reiterated that investors should not interpret the ruling as a turnaround trigger.
“The verdict doesn’t change the company’s operational or financial challenges. Long-term investors must stay focused on fundamentals,” he concluded.