Citi has maintained its buy rating on Indus Towers with a target price of ₹500 per share after the Supreme Court released its official order and subsequent clarification regarding Vodafone Idea’s (VI) adjusted gross revenue (AGR) issue.
The order confirms that, given Vodafone Idea’s unique circumstances, the government is free to reconsider the company’s AGR liability, as the matter falls under its policy domain. The court clarified that the order applies solely to Vodafone Idea and not to other telecom operators such as Bharti Airtel.
Citi said the judgment now formally sets the stage for potential government relief to Vodafone Idea, which could accelerate progress on its debt refinancing and possible equity fundraising in the coming months. The brokerage added that the ruling should ease concerns over Vodafone’s near-term liquidity and, in turn, support Indus Towers’ receivables outlook.
Citi remains positive on Indus Towers, expecting the company to benefit from improved cash collections once Vodafone Idea’s financial situation stabilises.
Disclaimer: The views and recommendations above are those of Citi. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
