Emkay Global Financial's research report on Indus Towers
Tenancy and tower additions for Indus Towers may remain elevated for the next few quarters, led by rural expansion, densification of urban area, and 5G rollouts. Also, 5G will require tower densification once the rollout is largely complete, which though will take some time. Moreover, if the fundraise for Vi materializes, it will alleviate concerns on: i) receivables and ii) long-term demand from a key client. In the interim, we see challenges for Indus, due to: 1) cash crunch for Vi, with no tariff hike; 2) competition from other players like Summit Digitel. We increase FY24E/FY25E/FY26E EBITDA by 0.4%/1.2%/1.5%, respectively, as we adjust for higher tower/tenancy additions.
Outlook
We raise our DCF-based target price to Rs195 /share (Rs185 earlier), as we roll forward our estimates by a quarter. We maintain HOLD on the stock.
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