UBS has reiterated its positive outlook on Indus Towers, maintaining a Buy rating with a target price of ₹425, indicating a potential upside of approximately 16% from the current market price of ₹365.40.
Key Takeaways from UBS Report:
- Strong Free Cash Flow (FCF) Growth:
UBS emphasized improving free cash flow as a key positive, which could pave the way for a bumper dividend payout, enhancing shareholder value. - Stable Tenancy Ratio:
The brokerage highlighted that the tenancy ratio remains stable at 1.65x, reflecting consistent demand for Indus Towers’ infrastructure. - Rural Expansion Remains a Focus:
UBS identified rural expansion as a critical area to monitor, given its potential to drive long-term growth in the company’s revenue base.
Outlook:
UBS remains confident in Indus Towers’ ability to capitalize on improving cash flows and maintain a stable operational performance. The focus on rural expansion and the potential for higher dividend payouts are expected to be key growth drivers in the near term.
Current Market Performance:
With a CMP of ₹365.40, Indus Towers offers room for upside to UBS’s target price of ₹425, making it a viable investment option for those looking at the telecom infrastructure segment.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a financial advisor before making investment decisions
