Indus Towers: Motilal Oswal Flags Cautious Outlook Despite Vodafone Idea Relief Hopes — Check Target Price

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Motilal Oswal Report

Motilal Oswal has reiterated a 'Neutral' rating on Indus Towers Ltd. with an unchanged target price of Rs 390, implying a 5% downside from the current market price of Rs 409.

The brokerage believes that while potential relief measures for Vodafone Idea Ltd. could ease sentiment, the risk-reward remains uncompelling at current valuations.

Indus Towers has been gaining market share in new tower builds and benefiting from tenancy shifts from other towercos, driven by operational efficiencies and strong network uptime.

Management remains confident of securing most of Reliance Jio’s upcoming tenancy renewals, which account for 12–13% of revenue, given historical renewal trends and attractive rental structures.

The Africa foray is still at an initial stage, and concrete investment plans have not been finalized. However, management believes Africa is a good growth market, with presence of a strong anchor tenant in Airtel Africa. Further, the company’s scale, along with Bharti’s knowledge of African markets, would help Indus deliver lower capital and operating costs, which should aid incremental tenancy additions.

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