Citi has reiterated its ‘Buy’ rating on Indus Towers with a target price of ₹485, highlighting that the stock has corrected by 28% since announcing its share buyback on July 30, creating an attractive entry point.
The brokerage outlined key positives that have been overlooked, including the anticipated pickup in tenancies from Vodafone Idea starting Q3 FY25, acceleration in the recovery of past dues from VI, and declining capex aiding free cash flow generation. Citi also noted an improving outlook for dividend reinstatement by Q4 FY25.
Despite recent headwinds such as the adverse AGR curative petition ruling, Citi expects these triggers to drive recovery and bolster investor confidence in the stock.
