On January 17, 2025, CLSA added Indus Towers to its “high conviction” outperform list. The brokerage set a target price of Rs 575 per share, suggesting a 62% upside. Indus Towers’ shares rose by 1.2%, trading at Rs 358.6.
CLSA highlighted that Vodafone Idea’s dues to Indus Towers fell by over 70%. This reduction boosts confidence in Indus Towers’ 4G/5G investments. The company projects a 10% annual growth rate in EBITDA, strong cash flows, a 7% free cash flow yield, and a 23% return on capital by FY27.
Citi Research also maintained a positive outlook on Indus Towers due to a bank guarantee waiver for Vodafone Idea. Any progress on Vodafone Idea’s debt funding will be crucial.
CLSA expects Indus Towers to resume dividends in Q3 or Q4 of FY25. The brokerage also anticipates increased tenancies from Vodafone Idea starting Q3, with an improvement in tenancy ratio from Q4.
