Sell Indus Tower; target of Rs 280: ICICI Securities

ICICI Securities is bearish on Indus Tower has recommended sell rating on the stock with a target price of Rs 280 in its research report dated October 22, 2024.

Broker Research

October 23, 2024 / 13:17 IST

sell

26 Aug, 2025 12:21

Volume

Todays L/H

ICICI Securities research report on Indus Tower

Indus Towers’ (Indus) Q2FY25 performance was good on two counts: 1) stable net tenancy addition at 4,308 with some benefit already showing from VIL/BSNL rollout; and 2) strong cash collection, including INR 10.8bn collected towards past overdue. Indus has also seen a rise in rental/tenant, reflecting the benefit of rising 5G loading, and lower drag from renewals. VIL should embark on a capex cycle, which will likely provide opportunity for tenancy growth for Indus immediately; and Indus is prepared for increased competitive intensity or price pressure.

Outlook

We have baked in dominant incremental tenancy share for Indus in the VIL rollout, which remains unchanged; but our DCF-based target price has increased to INR 280 (from INR 270), factoring in buy back. Maintain SELL, as risk-reward is still unfavourable.

For all recommendations report, click here