CLSA has upgraded Indus Towers to a ‘High Conviction Outperform’ rating with a target price of ₹575, indicating a significant upside potential of 62.2% from its current market price of ₹354.50.
The upgrade follows a positive development, as Indus Towers recently received an additional ₹19 billion payment from Vodafone Idea (VIdea) for past dues. This has reduced overdue payments from VIdea by over 70% from their peak, bolstering confidence in VIdea’s planned 4G and 5G network investments.
Indus Towers, with its vast portfolio of 229,658 towers, primarily thrives on Bharti Airtel and VIdea as anchor tenants. CLSA highlights a robust growth outlook for the company, driven by a projected 25% tenancy expansion, 10% EBITDA CAGR, strong cashflows, a free cash flow yield of 7%, and an impressive ROCE of 23% by FY27.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before making any investment decisions.
