Citi projects 46% upside for Indus Towers, cites positive growth outlook

Global brokerage firm Citi has reiterated its bullish stance on Indus Towers, maintaining a 'buy' rating and a target price of Rs 490, suggesting a substantial 46% upside potential for the stock from its closing price of Rs 335.15 on February 14.

Citi's optimistic outlook is predicated on several key factors. The brokerage anticipates a positive growth trajectory for Indus Towers over the next 1-2 years, primarily fueled by new network rollouts by major telecom operators like Vodafone Idea and Bharti Airtel. These rollouts are expected to drive significant demand for Indus Towers' infrastructure.

Furthermore, Citi forecasts a 15% tenancy growth for Indus Towers in FY26, following the company's acquisition of 16,000 towers. This acquisition may significantly expand Indus Towers' portfolio and contribute to its revenue growth.


Another compelling factor bolstering Citi's positive view is the strong free cash flow (FCF) generation, which is projected to enable the company to initiate dividend payouts as early as the fourth quarter. This prospect of dividend income adds to the stock's overall appeal for investors.

Looking beyond the immediate drivers, Citi also sees significant long-term potential in the electric vehicle (EV) charging infrastructure space. The brokerage believes that EV charging could evolve into a large-scale, annuity-based business-to-business (B2B) model for Indus Towers, providing a stable and recurring revenue stream in the future.

Indus Towers share price history

Over the past 1 year, the shares of Indus Towers have experienced a significant increase of 55.16%. However, the year-to-date (YTD) performance shows a decline of 2.52%.

Over the last 6 months, the stock has seen a considerable drop of 16.86%. In contrast, the stock has shown some positive momentum in the shorter term, gaining 5.64%.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)