BOFA Securities has maintained a “Buy” rating on Indus Towers but revised its target price downwards from ₹490 to ₹450. The adjustment follows the recent AGR decision, which, while not directly impacting Indus Tower, has derivative effects.
BOFA notes that there will be no impact on expected tenancy growth. However, the report suggests a potential multiple de-rating and a low possibility of a lump-sum payment or any special dividend in the near term. Despite these factors, BOFA maintains a “Buy” rating due to Indus Tower’s inexpensive valuations, trading at 6.9 times the estimated FY26 enterprise value to EBITDA (EV/EBITDA) compared to 12.6 times for its global peers.
