Indus Towers shares edged over 2% higher after Citi reaffirmed its high-conviction buy rating on the stock with a target price of ₹500 per share. As of 9:25 AM, the shares were trading 1.97% higher at Rs 409.85.
The brokerage said recent statements from Union Minister of Communications Jyotiraditya Scindia have provided long-awaited clarity on the government’s approach to Vodafone Idea’s (VI) AGR liabilities, materially improving visibility around Indus Towers’ receivables and tenancy growth prospects.
Scindia indicated that the framework for VI’s relief package is expected to be finalised within the coming weeks, with completion targeted before the end of the year. He further clarified that the Supreme Court’s ruling is applicable solely to Vodafone Idea and stressed that, excluding government dues, the operator’s leverage remains “very low.” This, he said, positions VI to raise fresh debt once the AGR reconciliation is completed.
Citi said the minister’s comments significantly reduce uncertainty surrounding VI’s financial trajectory and strengthen the case for a recovery in its operational performance. A stabilisation and eventual revival at VI, the brokerage noted, would directly benefit Indus Towers through improved payment discipline, higher tenancy additions and a more predictable pricing environment.
The brokerage added that current valuations already discount an overly pessimistic scenario, making the stock an attractive investment opportunity ahead of expected policy clarity and a potential improvement in sector fundamentals.
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