Citi has reiterated its “buy” rating on Indus Tower, maintaining a target price of ₹485. This suggests a potential upside of 43% from the current market price of ₹340.00.
The brokerage highlighted improved visibility of dividend reinstatement in Q3/Q4, driven by declining capital expenditure aiding free cash flow generation. Citi also noted an expected pickup in tenancies from Vodafone Idea starting in Q3, with a possible inflection in tenancy ratios from Q4 onwards.
Indus Tower is currently trading at a 6%-8% dividend yield, presenting an attractive opportunity for investors. Citi emphasized that any progress on Vodafone Idea’s debt funding will remain a key monitorable factor influencing the company’s performance in the coming quarters.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making investment decisions.
