Citi has raised its target price on Indus Towers to ₹485 from ₹470 while maintaining a ‘Buy’ rating, following an in-line Q4 performance. However, the brokerage has closed its positive catalyst watch on the stock — initiated on March 31 — citing concerns over a delayed dividend announcement that could impact near-term sentiment.
Indus Towers posted a 7.4% YoY rise in revenue to ₹7,727 crore, while EBITDA grew 7.1% YoY to ₹4,395 crore, maintaining margins at a strong 56.9%. However, net profit declined 4% YoY to ₹1,779 crore, missing Citi’s estimate by 13%, even as core rental revenues came in 2% ahead of expectations.
Citi highlighted that while operational performance was stable and Vodafone Idea cleared all past undisputed dues, the absence of a widely anticipated dividend payout introduces uncertainty, especially as investors had been banking on capital returns.
On the operational side, Citi also noted a QoQ increase in estimated new tenancies from Vodafone Idea, which supports the long-term tower demand thesis. Still, the brokerage warned that the dividend delay may weigh on near-term stock performance, even as underlying fundamentals remain intact.
Disclaimer: The above views are those of the brokerage and not the publication. Investors are advised to consult a certified financial advisor before making any investment decisions.
