India's Indus Towers has 'best priced in', says Jefferies

Indus Towers

10/04/2024 08:56

** Shares of telecom tower operator Indus Towers  INUS.NS 
drop more than 3% to session-low before recovering to trade flat
    ** Jefferies reiterates 'underperform' rating, saying the
"best is priced in" after stock's 60% rally YTD
    ** Says, stock trades at 6% FCF yield, fully capturing any
likely growth improvement if Vodafone Idea  VODA.NS  expands its
network
    ** Notes even if Vodafone expands network, Indus's EBITDA
growth will be less than Bharti Airtel's  BRTI.NS , which also
trades at 6% FCF yield
    ** Expects a downside from current level, even assuming
better FCF conversion, due to likely weak tower/tenancy growth
    ** Jefferies raises its PT on INUS to 250 rupees, about 24%
below stock's closing price on Tuesday
    ** Analysts avg rating on INUS is 'hold' and median PT is
237.50 rupees - LSEG data

 (Reporting by Savio Dsouza)
 ((savio.dsouza@thomsonreuters.com;))