Indus Towers delivered a stellar quarterly performance in Q3 FY25. Its net profit jumped 160% year-on-year. The profit performance was bolstered by significant overdue collections from a major customer, leading to a Rs 3,024 crore write-back of doubtful receivables. The brokerage houses are bullish and expect a dividend in the next quarter of the current financial year.
Here are the key reasons why brokerages are bullish on Indus Towers- Citi bets on dividend
The brokerage house, Citi, said Vodafone Idea’s 90% of past dues are covered. It said that the company may pay a dividend of Rs 20 per equity share in the next quarter of the current financial year along with higher free cash flow generation. The brokerage has maintained its ‘Buy’ on the stock with a target price of Rs 485. Citi further said that the new tenancies for their towers have started kicking in.
UBS maintains ‘Buy’ rating
The brokerage house, UBS, maintained a ‘Buy’ rating on the stock. It has a target price of Rs 425 on Indus Towers. It also believes that the company may start paying out “bumper dividend” due to rising cash flow. It said that the company has expanded in rural areas, which is a key thing to monitor.
Shares of Indus Towers rose 2% to a high of Rs 374.20 as of 11 am. On January 24, the stock closed the counter 2.3% higher at Rs 365.40 a day ahead of results. Indus Towers reported a consolidated net profit of Rs 4,003.2 crore, up 160% from Rs 1,540.50 crore in the correspondent quarter of the previous fiscal year. The company reported this strong quarter growth on the back of major overdue collections from Vodafone Idea. The brokerage house, Citi, said Vodafone Idea’s 90% of past dues are covered.
Indus Towers in Q2
It reported a strong quarterly performance in Q2 FY25 reporting a 71.7% on-year jump in net profit to Rs 2,224 crore. The surge in net profit came on the back of strong tower additions and past overdue collections from Vodafone Idea. Its revenue grew 4.7% on year to Rs 7,465 crore in Q2 FY25.
Indus Towers Vs Nifty 50
The share price of Indus Towers has fallen 0.3% in the past five trading days. It has risen more than 11% in the past one month.
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