Time period given by analyst is one year when Indus Towers Ltd. price can reach defined target.
Indus Towers Ltd., incorporated in the year 2006, is a Large Cap company (having a market cap of Rs 74097.29 Crore) operating in Telecommunications sector.
Indus Towers Ltd. key Products/Revenue Segments include Income from Infrastructure Activity for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 6969.20 Crore, up 1.68 % from last quarter Total Income of Rs 6853.90 Crore and up 289.65 % from last year same quarter Total Income of Rs 1788.60 Crore. Company reported net profit after tax of Rs 1558.50 Crore in latest quarter.
Investment Rationale
The recently announced telecom relief package by the government and the moderation in tenancy exits have removed the risk to revenues as well as the overhang on the stock (up 26% in the last three months). However, the continued increase in receivables (50% rise in H1FY22) points to the weak financial position of VIL. The brokerage continues to highlight that VIL will have to bring its house in order with fresh funding and tariff hikes before it starts investing in network expansion, which could potentially lead to tenancy additions for Indus. Until then, it believes that Bharti will remain the key contributor to tenancy growth, with single tenancy tower additions. It has raised FY22E revenue assumptions due to the inflation in diesel prices, while largely retaining revenue estimates for FY23-24. However, it has revised bottom-line projections upward by 2-4% due to lower depreciation charges. Key risks: 1) aggressive 4G expansion for independent sites; 2) robust growth from Jio; 3) shift to 5G, leading to fresh investments; 4) improvement in VIL’s financials; and 5) new revenue sources such as smart cities.
Promoter/FII Holdings
Promoters held 69.85 per cent stake in the company as of 30-Sep-2021, while FIIs owned 29.1 per cent, DIIs 0.35 per cent.
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