One of the largest telecom tower company stocks gained around 5 percent on Tuesday after CLSA revised a target on the stock with an upside of 24 percent.
The stock belongs to the large-cap category with a market capitalization of Rs 98,352 crore. While Indus Towers shares have gained 104 percent in the last six months and 162 percent in a year.
On Tuesday, at 1:15 p.m, shares were trading at ₹362.65 apiece, up 3.75 percent on the exchange.
The company’s revenues have increased by 5 percent year on year from ₹6,765 crore in Q3FY23 to ₹7,099 crore in Q3FY24, while net profit has increased from loss of ₹ 708 crore to ₹1,540 crore.
Indus Towers Limited is engaged in the business setting up, operating, and maintaining wireless communication towers. The company has a tower market share of 33% and a tenancy market share of 42% which makes it a leader in the telecom tower industry in India.
CLSA has revised a ‘buy’ rating on Indus Towers Ltd with a target of ₹ 450 per share from ₹ 335 per share, with an upside potential of 24 percent based on Tuesday’s trading price of ₹ 365 apiece.The rationale behind the recommendations is
The brokerage has revised its forecasts for calendar years 2025 and 2026, anticipating by 1-9% due to the addition of 24,000 new tenancies by the company. This is expected to enhance the CY26 EBITDA growth by 10% year-on-year.
Additionally, CLSA indicated that Vodafone Idea’s settlement of past dues amounting to ₹5,700 crore could add an incremental value of ₹21 per share to Indus Towers Ltd.
In their analysis, CLSA emphasized that Indus Towers stands to benefit significantly from Vodafone Idea’s fundraising efforts and the planned expansion of 48,000 4G and 5G sites.
Vodafone Idea’s ₹18,000 crore follow-on public offer (FPO), India’s largest, was successfully completed on April 22. The FPO was oversubscribed nearly seven times, driven by robust demand from global institutional investors.
Vodafone Idea plans to allocate ₹12,750 crore from the net issue proceeds towards enhancing its network infrastructure. This includes establishing new 4G and 5G sites and augmenting the capacity of its existing 4G sites, as highlighted by the brokerage.
According to Nuvama Alternative and Quantitative Research, Indus Towers is anticipated to be added to the MSCI Global Standard Index during the index’s review in May. The brokerage projects potential inflows of $189 million into Indus Towers should the company be included in the index.
Written by Omkar Chitnis
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