Indus Towers Shares: Indus Towers Ltd (NSE: INDUSTOWER) share jumped up to 6% in early trade on 23 September. This rise came after the news that a foreign brokerage firm has given it a ‘Buy’ rating.
Also, a target price of 500 per share has been set for its shares. According to the foreign brokerage firm, the Supreme Court’s dismissal of the AGR petition will not have any immediate effect on Vodafone Idea’s cash flow, but it may affect the stock’s sentiment shortly.
The brokerage said that investors can see this weakness as a buying opportunity, especially when Indus Towers Ltd’s dividend yield is close to 6-7%.
But, in addition to this, investors must keep a watch on a few important aspects. This includes Vodafone Idea’s fundraising process, progress on the company’s capital expenditure plans, and old dues to be paid by Vodafone Idea in the second quarter, etc.
A Brokerage Firm Also Gave A ‘Buy’ Rating
The brokerage firm has also given a ‘Buy’ rating to Indus Towers Ltd stock, but it reduced the target price from Rs 490 to Rs 450 per share.
According to the brokerage firm, the Supreme Court’s decision on the AGR petition may have an indirect impact on the company, but it will not affect its tenancy growth.
However, he has predicted a possible decline in the company’s valuation and said that no major payment or special dividend is expected shortly.
The brokerage described the current valuation of Indus Towers Ltd as attractive and said that the company is currently trading at 6.9 times its FY26 estimated EV/EBITDA, which is much lower than the 12.6 times of its global peers.
Another Foreign Brokerage Firm’s ‘underperform’ Rating
Another foreign brokerage firm gave an ‘Underperform’ rating to Indus Towers Ltd stock. The brokerage said that the company’s core earnings may have peaked.
The brokerage said that Vodafone Idea is one of the major tenants of Indus Towers Ltd and at present there is uncertainty about its future growth prospects.
Indus Towers Ltd share was trading 5.7 percent higher at Rs 410.60. In the last year, the stock has gained a massive 116.55%, more than doubling the capital of its shareholders.
At the same time, the Nifty has given a return of about 27 % during this period. So far this year alone, the company’s shares have gained about 102 %.
Quick Fact
| Company name | Indus Towers |
|---|---|
| Stock price | 403 rupees |
| Share jump | 6% |
| Reason for rise | Buy rating from foreign brokerage |
| Possible target price | ₹500 |
| Dividend yield | 6-7% |
| Key factors to watch | Vodafone Idea’s fundraising, capital expenditure progress, and dues payment |
| Another target price | ₹450 |
| Expected payment | No major payment or special dividend soon |
| Valuation metric | Trading at 6.9x FY26 EV/EBITDA, lower than global peers (12.6x) |
| Core earnings | May have peaked |
| Major tenant | Vodafone Idea |
| A Stock gain in the last year | 116.55% |
| Nifty return in the last year | 27% |
| Stock gain this year | 102% |
Disclaimer: The website and its content are for informational purposes only and should not be considered investment advice.
