UBS has reiterated Indus Towers as its preferred pick in the telecom sector, citing an improving free cash flow (FCF) and dividend profile, with the possibility of special dividends not fully priced in. The brokerage has maintained a ‘buy’ rating on Indus Towers, with a target price of ₹440.
Vodafone Idea (Vi) also remains a ‘buy’, with a ₹12.1 target, as UBS believes potential government relief measures could be equity value accretive for the struggling telecom operator.
However, the brokerage has retained a ‘neutral’ rating on Bharti Airtel, with a ₹1,705 target, noting that its India business is trading at an implied FY27E EV/EBITDA of 11x, with limited near-term catalysts for the stock.
UBS also highlighted potential surprises for the sector, questioning whether the next big trigger would come from government policies or a tariff hike.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research before making any investment decisions.
