India's Indus Towers drops as Africa expansion raises capital allocation concerns

Indus Towers

03/09/2025 05:57

** Shares of Indus Towers INUS.NS fall 5% to 313.20 rupees

** Telecom infra firm's board approved foray into African markets, beginning with Nigeria, Uganda and Zambia, to diversify revenue and create long-term value

** Co to leverage its anchor customer relationship with Bharti Airtel BRTI.NS to establish a competitive presence

** Emkay Capital (maintains 'Buy', TP of 410 rupees) sees capital allocation unfavourably due to currency and repatriation risks; adds, any significant capital deployment could trigger a downgrade

** CLSA (maintains 'high conviction outperform' rating, revises TP to 520 rupees) sees limited medium-term upside from Indus's diversification; expected higher dividend roll out to strengthen capital structure

** Twenty one analysts covering INUS have a "hold" rating on avg; median PT is 401.50 rupees - data compiled by LSEG

** INUS down ~9% YTD

 (Reporting by Urvi Dugar)

 ((UrviManoj.Dugar@thomsonreuters.com))