Indus Towers Share Price Soars by 9% on the First Day of New Financial Year 📈💰
Investors in the stock market showed great enthusiasm on the first day of the new financial year, with strong bullish sentiment prevailing. Telecom company Indus Towers saw its share price rise by nearly 9%, marking a 120% increase over the past year. Brokerage houses are also bullish on this stock, setting a long-term target price of ₹400 per share.
Positive Ratings from Brokerage Firms 📈🔥
Several brokerage firms have given Indus Towers a bullish rating, including global firms like CLSA and Citi. CLSA has an Accumulate rating on the stock and raised its target price from ₹256 to ₹335. Citi also has a Buy rating with a target price of ₹400.
Wednesday, 03 April 2024 ★Indus Towers Share Price at ₹301 📉💵
On Wednesday, the stock was trading at ₹301, down 1.12% from the previous day. Brokerage firms have cited several reasons for the stock’s rapid rise, including hopes of recovering dues from Vodafone Idea. Indus Towers is a major beneficiary of Vodafone Idea’s fund-raising plans, with payments from the company being positive for the company since FY23.
Optimistic Outlook for Indus Towers 🌟💸
The decision to convert Vodafone Idea’s OCD into equity by American Towers is seen as a positive move, with the company expected to recover dues from vendors like Vodafone Idea soon. Indus Towers currently has ₹5,700 crore outstanding from Vodafone Idea, with CLSA estimating that EBITDA could double digits post approval of the due amount.
Citi predicts that Indus Towers could generate free cash flow of ₹4,000 crore in the financial year 2025. The field consolidation is seen as positive, especially after Brookfield’s acquisition of ATC’s Indian Towers. Compared to global tower companies, Indus Towers’ valuation is at a 65% discount.
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