Citi has maintained its bullish stance on Indus Towers, reiterating a Buy call with a target price of ₹485, reflecting a potential upside of approximately 33% from the current market price of ₹365.40.
Key Takeaways from Citi’s Report:
- Vodafone Idea’s Past Dues Covered:
Citi noted that 90% of Vodafone Idea’s past dues have now been covered, a significant development that alleviates concerns about financial risks associated with one of Indus Towers’ major clients. - Improving Tenancies:
The brokerage highlighted that new tenancies have started kicking in, which is expected to bolster revenue growth in the coming quarters. - FCF Generation to Improve:
Citi expects free cash flow (FCF) generation to see an uptick in Q4FY25, driven by operational improvements and a recovering business environment. - Potential ₹20 Dividend Payout:
The company could declare a ₹20 per share dividend in Q4FY25, providing additional value to shareholders and improving investor sentiment.
Outlook:
Citi believes the improving tenancy metrics and consistent cash flow generation will position Indus Towers for steady growth in the medium term. With potential dividend payouts and a higher free cash flow projection, the brokerage remains optimistic about the stock’s performance despite past challenges.
Current Market Performance:
At a CMP of ₹365.40, the stock offers considerable upside to Citi’s target of ₹485, making it a notable pick for investors seeking exposure to the telecom infrastructure space.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a financial advisor before making investment decisions.
