ICICI Securities research report on Indus Tower
Indus Towers’ (Indus) Q2FY24 performance was good on two counts: 1) tenancy addition accelerated with net add of 5,583 despite 840 exits; and 2) there was no large provisioning that had marred EBITDA previously. However, rising single-tenancy towers are continuously diluting margins and RoCE, and VIL has to significantly recover to increase visibility on rising tenancy sharing over medium term. We don’t see immediate collection risk for Indus, however going concern status may still be at risk for VIL in medium term. We have cut our EPS estimates by 2-5% over FY24E/FY25E.
Outlook
However, our revised DCF-based target price is INR 178 (earlier: INR 155) as we rollover DCF-based valuations to FY25E. We upgrade our rating to HOLD (from Reduce) on improving near-term performance.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
