Citi has reiterated its positive view on Indus Towers, maintaining a buy call on the stock with a target price of ₹460 per share. The brokerage noted that concerns over payout deferrals had weighed on the counter and drove its recent correction. However, it added that Bharti Airtel’s decision to raise its stake in the company signals confidence in the business and should help limit further downside.
Bharti Airtel increased its holding in Indus Towers by 0.26 percent through open-market purchases between August 25 and September 1. Citi highlighted that the move by the telecom major serves as a strong signal of faith in the tower company’s long-term prospects. With concerns around cash flow distribution already priced in, the brokerage believes the current valuation offers an attractive risk-reward profile for investors.
Indus Towers shares were last seen trading at ₹337 on the exchange, well below Citi’s target price, suggesting a potential upside from current levels.
Disclaimer: The views and investment recommendations expressed above are those of Citi. They do not represent the views of this publication. This article is for informational purposes only and is not investment advice.
