Broker’s call: Indus Towers (Add)

Target: ₹375

Target: ₹375

CMP: ₹352.90

Indus Towers delivered a beat on EBITDA, amid strong tower/tenancy addition and reversal of provisioning related to Vi receivables. The fund-raise helped one of Indus’s major customer’s (i.e. Vi) to clear some of its pending dues. The amount was received in April which the company adjusted in its Q4 results

Also read:Broker’s call: SBI Life (Outperform)Order book for tower addition looks strong for the remaining year.

Tenancy and tower additions for Indus are likely to stay elevated for the next few quarters, led by rural expansion and capex by Vi for 4G/5G after the ₹20,000 crorefund-raise. Also, 5G will require tower densification as the rollout nears completion, which though will take some more time. We believe that the new tower additions will pick up pace, once the loading of existing towers with 5G radios is complete and data consumption increases, thus requiring more capacity on network. However, this may pan out only over the one to two years.

Reversal of provisioning related to Vi after the fund-raise would improve reported EBITDA margin for the company. As a result, we raise our FY25/FY26 EBITDA estimates by 10/12 per cent, as we adjust for the provisioning reversal.

We increase our DCF-based TP to ₹375/share (₹250 earlier; WACC: 12 per cent; Terminal growth rate: 3 per cent); maintain Add.

Like (0)
Previous May 3, 2024 2:15 pm
Next May 3, 2024 2:15 pm

Related posts

  • Graphic | How much do Americans save for retirement?

    May 15th | A recent survey by Northwestern Mutual Life Insurance Company, the largest life insurance company in the United States, showed that US$1.46 million is the ideal retirement savings goal, up from US$1.27 million last year

    stock index May 15, 2024
  • Feng Xiyun: Analysis of foreign exchange, gold and crude oil trends

    April 25, [Gold technical analysis]: Judging from the gold daily chart, today’s trend is that gold has peaked in the mid-term and is bearish. Technically, the gold daily K-line has been negative for two consecutive times, with a decline of 90 points. The current hourly line and 4 The opening of the Bollinger Bands in the hourly chart diverges downward, and the SAR parabolic indicator releases a bearish signal. The green kinetic energy column of the MACD indicator in these two cycles has increased in volume. At the same time, the daily MACD indicator has also turned into a green column and gradually increased in volume. Today\’s trend is undoubtedly bearish. Today\’s European and American trading resistance focuses on the 4-hour MA5 moving average at 2315, followed by the 1-hour Bollinger Band mid-track position at 2320. Above, look at the suppression range formed by the hourly SAR extension point of 2328 and today\’s high of 2334. In terms of support, pay attention to the lower track of the hourly Bollinger Bands and the lower track of the 4-hour error band…

    stock index April 25, 2024
  • Illustration丨Comparison of chip industry market value Nvidia can pick 1 out of 8

    Gelonghui, May 22 | After the U.S. stock market closes on Wednesday, NVIDIA, known as the most important stock on earth, will announce its performance report for the first quarter of fiscal year 2025.

    stock index May 22, 2024
  • Stocks that will see action today (April 22)

    HDFC Bank has posted a net profit of ₹16,512 crore for Q4, higher by 37.1per cent on year but up less than 1 per cent sequentially. The results for Q4 and FY24 include the impact of the merger of erstwhile HDFC with the bank effective July 2023. Net revenue grew 47.3 per cent on year to ₹47,240 crore and included gains of ₹7,340 crore from the stake sale in subsidiary HDFC Credila Financial. As a result, the bank saw net trading and mark-to-market gains of ₹7,590 crore in Q4 against a loss of ₹40 crore in the year-ago period. Total other income for the quarter was up 108 per cent on year at ₹18,170 crore.

    stock index April 22, 2024
  • JD.com prepares 200 million yuan in gifts with tens of billions of subsidies and launches a beauty makeup bonus game

    Sina Technology News According to news on the afternoon of April 25, JD.com revealed that on April 26, JD.com’s tens of billions of subsidies will officially launch the beauty bonus game. Users purchase JD.com\’s self-operated beauty products on the Ten Billion Subsidy Channel. When the total amount of a single order reaches 300 yuan, 600 yuan, 1,000 yuan, 3,000 yuan, or 10,000 yuan, they can choose a big-name authentic product from the corresponding gift pool for free. Or sample as a gift. It is reported that JD.com has prepared gifts with a total value of 200 million yuan for the first phase of its tens-billion-dollar beauty subsidies and gifts campaign, covering beauty, luxury goods, jewelry, bags and other categories.

    stock index April 25, 2024
  • F&O Query: Should you buy call option on Nifty Financial Services?

    What is the short-term outlook for Nifty Financial Services? Can I go long now?

    stock index May 19, 2024