Axis Capital has initiated coverage on Indus Towers with an “Add” rating and a target price of ₹356, implying a 9% upside from the current market price of ₹326.65.
The brokerage expects Indus Towers to deliver healthy performance after challenging years, supported by better rental revenue growth as Vodafone Idea kickstarts network expansion and Bharti transitions to 5G. Peak capex is now behind, setting the stage for healthy EBITDA growth and free cash flow generation.
Additionally, Axis Capital notes that this could enable Indus to reinstate dividends after two years. However, Vodafone Idea’s debt situation remains a key uncertainty. Despite headwinds abating, the firm suggests awaiting a better entry point given the stock’s 60% year-to-date rise.
Disclaimer: This report is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making investment decisions.
