Reduce Indus Towers, target price Rs 335: ICICI Securities

ICICI Securities has a reduce call on Indus Towers with a target price of Rs 335. The current market price of Indus Towers Ltd. is Rs 344.5.

Investment Rationale
Rental per tenant is likely to dip 0.3% QoQ to Rs 41,302 driven by higher tenancy increase, but partly offset by rise in loading revenue on 5G rollout. Rental revenue may rise 0.8% QoQ (+6% YoY) to Rs 48.5 billion. ICICI Securities expects EBITDA to decline 1.9% YoY (down 42.6% QoQ) to Rs 40 billion as Indus had a provision reversal in Q3FY25 and Q4FY24, which the brokerage factors in as nil in Q4FY25E. However, they see a higher likelihood of remaining INR 5bn recovery from VIL. I-Sec expects net profit to dip 9.2% YoY (down 58% QoQ) to Rs 16.8 billion. The brokerage has given a Reduce call with a target price of Rs 335.