Blog posts

25 Feb 2022

Market closes higher, Axis Direct maintains ‘BUY’ on MindTree

Trendlyne Analysis

Nifty 50 snaps its seven-day losing streak to close 2.5% higher with the Indian volatility index, India VIX falling 16%. All Asian indices closed in the green except the Hong Kong index, Hang Seng which closed 0.5% lower. Global stocks rebound after the fresh sanctions by the US did not include restrictions on Russian energy exports and the SWIFT messaging system.

Nifty Smallcap 100 and Nifty Midcap 100 extended their gains throughout the day to close sharply higher. Nifty PSU Bank, which shed over 8% on Thursday, recovered today to close 4.7% higher. Nifty IT closed in the green tracking the tech-heavy NASDAQ 100, which rose 3.4% on Thursday

Markets rose in today's trading. Nifty 50 closed at 16,658.40 (410.5, 2.5%), BSE Sensex closed at 55,858.52 (1,328.6, 2.4%) while the broader Nifty 500 closed at 14,187.40 (411.7, 3.0%)

Market breadth is highly positive. Of the 1,859 stocks traded today, 1,609 were in the positive territory and 226 were negative.

KSB, Procter & Gamble Hygiene & Healthcare, Supreme Industries, and Timken India are trading with higher volumes as compared to Thursday.
Nifty Bank is trading higher with stocks likeRBL Bank, IDFC First Bank, Punjab National Bank, IndusInd Bank, and Bandhan Bank among others rising in trade.
UPL rises as the company's board will meet on March 2, 2022 to consider a proposal for buyback of fully paid-up equity shares.
Axis Direct maintains a ‘BUY’ rating on MindTree with a target price of Rs 5,310, indicating an upside of 39%. The brokerage remains positive on the company’s strong initiatives to improve profit margins and expects its revenue to grow at 15.6% CAGR over FY21-FY24E.
Adani Power’s stock price surges on Supreme Court ordering three discoms to pay a compensatory tariff to the company within 4 weeks, which amounts to Rs 4,200 crore. The apex court holds the 3 Rajasthan discoms in contempt of court, as they have not paid their dues despite their review petition having been dismissed earlier this year.
Home First Finance Company India is trading with more than 5 times its weekly average trading volume. The Fertilisers and Chemicals Travancore, Fine Organic Industries, Natco Pharma, and WABCO India are trading at more than two times their weekly average trading volumes.
Motilal Oswal maintains 'Buy' rating on Mahindra CIE Automotive but reduces the target price to Rs 245 due to week performance in Q4CY21. The brokerage remains positive on the company due to strong demand in commercial vehicles and private vehicle business.
Coal India mulls partnership with private players to operate mines that it had previously shut on a revenue sharing basis, according to new reports. The company also holds a onsultation meeting and sees high intent from players like Adani Enterprises and Tata Power among others.
Minda Industries acquires 36.5% stake in YA Auto Industries increasing total stake to 87.5% and acquires 46.1% in Auto Components increasing the stake to 95%. The company also acquires 87.5% stake in both, Samaira Engineering and S.M. Auto Industries.
BF Industrial Solutions, a wholly-owned subsidiary of Bharat Forge enters into a share purchase agreement with JS Auto Cast Foundry India Pte to acquire 100% of its shareholding. JS Auto is a leading supplier of critical machined ductile iron castings for wind, hydraulic, off-highway, and automotive applications. Bharat Forge has not disclosed the value of the agreement citing confidentiality reasons
Hindustan Unilever announces separation of the post of chairman of the board and the MD-CEO. Nitin Paranjpe, currently CEO of Unilever, will be the new non-executive chairman of the company, with effect from March 31, 2022. Sanjiv Mehta, who was earlier chairman and MD, will continue as MD and CEO
Motilal Oswal mutual fund buys 5.42 lakh shares or 1.5% stake in Barbeque Nation Hospitality for an average price of Rs 1,150 per share in a bulk deal on Thursday.
Maruti Suzuki and Toyota come together to manufacture pure-electric compact SUVs by 2025 in India. Both companies are looking at starting production at the Suzuki Motor Gujarat factory in Ahmedabad. They are already working on building an EV platform with latest battery technology to build cars with different body styles catering both, the domestic and international market.

Riding High:

Largecap and midcap gainers today include Adani Power Ltd. (124.05, 11.61%), Macrotech Developers Ltd. (1,174.80, 11.45%) and Dixon Technologies (India) Ltd. (4,434.15, 9.50%).

Downers:

Largecap and midcap losers today include Power Finance Corporation Ltd. (108.45, -2.78%), Hindustan Petroleum Corporation Ltd. (267.80, -1.60%) and Dr. Lal Pathlabs Ltd. (2,520.95, -1.06%).

Volume Rockets

10 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Advanced Enzyme Technologies Ltd. (309.80, 18.06%), Vinati Organics Ltd. (1,864.65, 9.69%) and Mastek Ltd. (2,790.15, 9.68%).

Top high volume losers on BSE were Aegis Logistics Ltd. (171.80, -5.32%), Hawkins Cookers Ltd. (5,200.00, -2.24%) and WABCO India Ltd. (7,421.20, -1.00%).

Fine Organic Industries Ltd. (4,272.95, 8.25%) was trading at 5.6 times of weekly average. Kajaria Ceramics Ltd. (1,123.45, 0.12%) and Jyothy Labs Ltd. (133.45, 1.41%) were trading with volumes 5.5 and 5.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows, and moving averages

1 stock made 52-week highs, while 5 stocks hit their 52-week lows.

Stock touching their year highs included - Fine Organic Industries Ltd. (4,272.95, 8.25%).

Stocks making new 52 weeks lows included - Aegis Logistics Ltd. (171.80, -5.32%) and AIA Engineering Ltd. (1,639.45, 0.02%).

47 stocks climbed above their 200 day SMA including Mastek Ltd. (2,790.15, 9.68%) and Coal India Ltd. (163.45, 8.97%). 23 stocks slipped below their 200 SMA including Suven Pharmaceuticals Ltd. (517.75, -0.96%) and Kajaria Ceramics Ltd. (1,123.45, 0.12%).

The Baseline created a screener One Year Outperformers: Stocks …

25 Feb 2022

One Year Outperformers: Stocks outperforming their sector in one year returns

Stocks that outperformed their sector performance

The Baseline

25 Feb 2022

Several stocks enter PE buy zone with market correction, diagnostic companies look for new ways to grow

It's often said that those who can bend with the wind, will weather the storm. The sharp volatility in markets amid Putin's invasion of Ukraine and rising oil prices, has shifted investors’ focus back to fundamentally strong companies that are now priced competitively.

This week, we look at such newly affordable stocks, and also at how Indian businesses are bracing themselves for the post-pandemic world.

In this week’s Analyticks:

Waning Covid-19 business forces diagnostic companies to look for new sources of growth
China+1 strategy drives exports jump for agrochem major PI Industries
Screener: Which stocks are in the PE Buy Zone post the market correction?

Let’s get into it.

Diagnostic labs are changing their strategy post-Covid

Diagnostic companies were in the spotlight for around two years with the pandemic.Covid-19 related testing helped these companies post strong revenues and profits. However, with the end of the pandemic's third wave and falling Covid testing, diagnostic companies are looking at different growth strategies.

Diagnostic labs saw modest YoY revenue growth in Q3FY22, missing Trendylne’s Forecaster Estimates. The overall revenue trend is still upward: Dr Lal Pathlabs’ Q3FY22 revenue rose 9% YoY to Rs 509 crore driven by robust growth in non-Covid revenues while Vijaya Diagnostics’ revenue grew 11% to Rs 114 crore. Only Thyrocare Technologies’ Q3 revenue fell 19% YoY to Rs 118.8 crore due to a reduction in Covid testing volume from government contracts.

In terms of non-Covid revenue growth, Dr Lal Pathlabs leads the pack with an increase of 28% YoY to Rs 438 crore. Metropolis Healthreported a modest 7% growth to Rs 243 crore in non-Covid revenue in Q3 due to lesser revenues from government contracts.

However, the net profit numbers across the sector tell a different story. While Metropolis Healthcare’s revenue in Q3FY22 increased by 6% YoY to Rs 295.7 crore, its net profit fell 30% to Rs 41 crore. This fall in revenue is not limited to Metropolis Healthcare alone, Dr Lal Pathlabs’ net profit fell 39% YoY to Rs 57.3 crores as well. Only Vijaya Diagnostics managed to report a marginal increase in net profit by 2% to Rs 25.3 crore.

The operating profit margin of all four companies decreased YoY in Q3FY22. While Dr Lal Pathlabs operating margin shrank by 870 bps YoY to 22%, Metropolis Healthcare’s margin fell 580 bps to 31.53%. Comparatively, Vijaya Diagnostics performed better with a decrease of 300 bps in operating profit margin YoY to 43.6%. The revenue per patient and per test fell for these diagnostic labs. For Metropolis Healthcare, revenue per patient fell 13% YoY to Rs 898, and revenue per test decreased by 14% to Rs 462.

There are a lot of moving parts responsible for this fall in profit margins in the sector. A drastic decrease in the operating profit margin from Covid revenues is a major contributor. According to Dr Lal Pathlabs’ management, the price of a Covid test for international passengers at Mumbai airport fell 44% to Rs 1,975 in Q3. The introduction of price ceilings by governments on Covid tests played a big part in this. In addition, the acquisitions by the diagnostics company pulled down overall operating profit margins as well.

However, when we look at the bigger picture in terms of annual revenue growth, the growth story for the diagnostic sector remains intact. The diagnostic industry is expected to grow at a CAGR of 12.1% over FY21-FY23E.

Only 15-20% of the overall market share of the diagnostics business is captured by listed companies. Given this fact, acquisitions of established private diagnostic labs has been the primary growth strategy for the top companies in this sector. While Dr Lal Pathlabs acquired Suburban diagnostics in Mumbai in Q3, Metropolis Healthcare acquired HiTech labs, which has a strong presence in South India.

Interestingly, both acquired companies have lower operating margins, resulting in a lowering of the overall profit margin. However, the increase in the number of patients is what these acquisitions are aiming for. The number of patients increased by 21% to 66 lakh and 22% to 33 lakh for Dr Lal Pathlabs and Metropolis Healthcare, respectively. The strategy of these companies is to leverage this increase in patients and top line growth, while normalising profit margins by offering a wider diagnostic test menu to new patients.

However, revenues can come under pressure with large healthcare service providers expanding aggressively into integrated digitised healthcare services. All these developments are happening after phenomenal Covid-led growth, as diagnostic companies try to keep flying high post pandemic.

Rising input costs spoil the party (a little) for PI Industries

The rise in input costs hurt almost all sectors, especially manufacturing companies. From auto to chemicals and coal, rising cost is a shared thorn in everyone's side. The story with PI Industries is no different.

Total expenses for PI Industries increased 18.8% YoY to Rs 1,123.4 crore in Q3FY22. Although the company tried to pass this on by increasing their product prices, the management says that the full effect will be visible from Q4FY22.

Net profit rose 14% YoY to Rs 222.6 crore. Analysts at ICICI Direct believe this was because of lower taxes in Q3FY21. Revenues grew 17% YoY to Rs 1,356 crore.

Growth in revenue is mainly because of growth in the CSM (custom synthesis and manufacturing) segment. This segment recorded a growth of 19% YoY to Rs 1,076 crore in Q3FY22.

EBITDA grows but margins take a hit

The rise in costs hurt EBITDA margins, which fell 210 bps YoY to 22% in Q3FY22. It also affected gross margins which fell 49 bps YoY to 46%. Cost of materials rose 13.8% YoY to Rs 671.3 crore (however this fell sequentially by 12.5% in Q3FY22). The sequential drop suggests that the company is tackling the problem of rising input costs.

EBITDA is up 8% YoY to Rs 297 crore. A favourable product mix helped absolute EBITDA grow in Q3FY22. However, the increase is very subtle as overhead costs surged by 24% YoY to Rs 333 crore. The rise in overhead cost is because of a spike in fuel prices, shipping costs, and expenses related to strategic initiatives.

Exports rise because of the China+1 strategy

PI Industries’ exports rose 19% YoY to Rs 1,076 crore in comparison to 8% YoY (Rs 280 crore) growth in the domestic market. This is because China is losing out on market share in the global chemicals sector. China had the lion’s share in this market for almost three decades until its unsustainable environmental practices led to the closure of most of its chemical manufacturing hubs.

As Chinese manufacturing tries to comply with new environmental rules, they are facing high operational and capital costs resulting in production cuts and supply-chain disruptions. This has caused most global companies to shift their procurement away from China and choose other alternatives, including India. This strategy is commonly known as the ‘China+1 strategy’. It is one of the main drivers for rising Indian chemical exports, and PI Industries has cashed in well on it.

Brokerages enthused by PI Industries prospects

Brokerages like Chola Wealth, Geojit BNP Paribas, and ICICI Securities are positive on the company with ‘Buy’ calls for this stock. They expect a strong order backlog in the CSM (custom synthesis and manufacturing) segment to drive growth as most of PI's revenues came from this segment in Q3FY22. Currently, the order book of the company stands at Rs 140 crore. The company is also diversifying into the pharma segment to improve its product mix and presence in the market.

PI Industries' is already working on scaling up its biochemical processes for both pharma and non-agrochemical segments in Q4FY22 and Q1FY23. The company expects 15-20% of revenues to come in from the non-agrichemical space for FY23-25. For now, its strategies put it on track to clock total revenue growth of 15% for FY22.

Screener:Stocks in PE buy zone with reasonable durability and quarterly growth rates

While the Nifty 50 index was resilient over the past month, BSE Small Cap and Nifty MidCap 100 indices lost nearly 10% and 7%, respectively.

This screener (subscriber) shows a list of stocks that are now trading in the PE Buy Zone, but also saw decent topline and bottomline growth in an otherwise difficult Q3FY22. These stocks are also on analysts’ radar given their robust business prospects.

Among 27 companies, heavyweights like Hindustan Unilever, Axis Bank, ONGC, Hindalco Industries, and Indian Oil Corp are currently trading in the ‘Buy Zone’. Given that Q3FY22 was a weak one for the FMCG sector, HUL continues to stay resilient in the face of inflationary cost pressures. Oil companies’ Q3 sales realisations got a boost owing to a nearly 70% YoY rise in global crude oil prices. These stocks still have steam left, given the sustained uptrend in oil prices on account of geopolitical concerns.

Axis Bank’s Q3 performance has been buoyed by higher growth in the home loan segment and lower provisioning. The favourable real estate cycle also worked in the favour of NBFCs like Home First Finance, Aditya Birla Capital, and CreditAccess Grameen.

Interestingly, while most mid-tier IT companies are out of investors’ reach owing to their sky-high valuations, Intellect Design Arena is currently trading in the PE Buy Zone.

Leading specialty chemicals player Aarti Industries and healthcare services company Narayana Hrudayalaya were other notable stocks in this list. Aarti Industries plans to demerge its pharma business as "Aarti Pharmalabs" in the next 6 months or so. Coal India, also in the Buy Zone, has gained out of the intermittent energy crises in India occurring in October and November 2021.

Broking companies ICICI Securities and IIFL Securities also find their place in this screener. However capital markets are likely to stay volatile for some time with instability in Europe and rising inflation, so the breakneck growth of the past few quarters for brokerages may not be as visible in Q4.

You can find some popular screeners here.

The Baseline

24 Feb 2022

Five Interesting Stocks Today: Russia Ukraine Edition

This instalment of Five Interesting Stocks looks at the potential impact of the Russia-Ukraine war and global sanctions on five stocks.

Dr Reddy’s Laboratories: This pharma company hit a new one-year low on Thursday with Russia invading Ukraine. In Q3FY22, Dr Reddy’s got about 13.2% (Rs 710 crore) of its total revenues from Russia and the Commonwealth of Independent States (CIS), including Ukraine.

The company’s revenue from this region may be greatly affected with the tensions, and as sanctions on Russia can disrupt the supply chain. The company’s forex losses may also rise with the rapid depreciation of the Russian Ruble.

Dr Reddy's had posted decent Q3FY22 results but missed Trendlyne’s Forecaster estimates. Dr Reddy’s Q3 net profit rose 14% YoY to Rs 709 crores and the revenues increased by 8% to Rs 5,394 crore. Since the company derives more than half its revenue from the US and India, it has been focusing on expansion in the emerging markets (mainly Russia). Revenue from Russia grew 5% YoY in Q3FY22 to Rs 470 crore (about 9% of the total revenues) on the back of new product launches, favorable forex rate, and increase in prices. In Q3FY22, Russia and Emerging Markets provided the company with growth opportunities in a time of high pricing pressure in the US, where it derives 35% of the total revenues. According to the management, the company is careful in allocating capital across geos and has been reducing the R&D expenditure towards the US markets to focus more on Indian and emerging markets. This Russia-Ukraine crisis comes as a roadblock for the management to carry out its long-term strategy to diversify its geographical revenue mix.

Indraprastha Gas: As the Russia-Ukraine conflict intensified, the stock of this city gas distributor witnessed an over 7% intraday correction in today’s session. On Thursday, crude oil prices shot up to over $103 per barrel, the highest since August 2014. While this works to the advantage of upstream oil and gas companies, downstream companies like IGL could face further heat. Stocks of City Gas Distributors (CGDs) were already under pressure as higher oil prices caused domestic gas prices to be hiked by 62% to $2.9/mmbtu in October 2021. Notably, the government also reduced the domestic gas allocation to CGDs which ultimately drove them to rely on spot gas/imported gas which is pricier. HDFC Securities initially expected gas prices to rise by another 37% to $4/mmbtu in April, 2022. However, the current geopolitical situation could brew fresh uncertainty.

Indraprastha Gas’ stock corrected over 20% ever since the Delhi Government released a draft EV policy note for cab aggregators on January 18, 2022. Acceleration in transition to EVs would sooner or later impact its sales volumes. Cut to the present, and IGL faces heightened risk of soaring oil prices as it will negatively impact the company's gross margins. Higher gas prices mean higher input costs for IGL. Once the company hikes prices to pass on higher costs, its volume could face downward pressure if the price differential with petrol/diesel reduces. Investors should watch out for IGL’s Q4FY22 performance and the upcoming gas price revisions in April, 2022.

Kajaria Ceramics: The stock of this ceramic and vitrified tiles manufacturer fell by 5.6% on Thursday with the sharp rise in crude prices, as Russia-Ukraine fighting intensifies. Rising prices of crude can hurt the company’s margins, playing spoilsport to otherwise steady volume growth. Kajaria's Q3 results were good considering the rise in fuel costs and supply chain bottlenecks. Net profits increased 2.6% YoY to Rs 122 crore, and revenue from operations increased 27.4% YoY to Rs 1,068.2 crore. In order to offset increased input costs, the company hiked prices across tiles product segments.The company aims to achieve 15% CAGR growth in volumes over the next 2-3 years on rising demand from urban India. The company has announced a capex of Rs 250 crore to increase its tile capacity by 17% to 85 MSM (million square meters) by Q1FY23. It further outlined Rs 290 crore capex towards tiles and bath-ware segment.

However, these plans of expansion were made with the expectation that fuel prices would eventually decrease and demand will increase. With the Russia-Ukraine conflict intensifying and geopolitical tensions rising, it is hard to predict how long the ramifications of the conflict and sanctions on Russia will last. One thing is clear, oil and gas prices will shoot up and supply chains will be further disrupted.

Kansai Nerolac: This paint maker’s stock hit a 52-week low of Rs 453.4 today, continuing to fall after the company posted weak Q3FY22 results. The stock has been falling after the company’s profit fell 34.7% YoY to Rs 132 crore because of low volume growth and raw material inflation. Although revenues grew 13% YoY to Rs 1,694 crore because of an increase in demand in the decorative segment, low demand from the industrial paints segment hit growth. This is because of reduced demand from the auto sector as it is facing production issues because of the ongoing semiconductor shortage.

High raw material cost and delays in raising product prices hit EBITDA margins of the company, falling 721 bps YoY to 12.4%. A recent price increase will sustain the decorative paints segment. Industrial segment prices however need a further increase to offset the sharp rise in raw material cost. With the ongoing Ukraine-Russia conflict, and most of the raw material for the paint sector being petroleum-based, input costs are set to soar even more. Kansai Nerolac needs to take quick decisions on its pricing techniques to avoid significant margin pressure.

Petronet LNG: This liquified natural gas re-gasifier’s stock hit a new 52-week low on Thursday. The stock fell nearly 7% in trading after Russia announced military operations. Oil and gas prices may rise further as sanctions against Russia are announced.

The company’s Q3FY22 results were good with net profit up 30% YoY to Rs 1,143.5 crore and revenues up 71.9% to Rs 12,597 crore. However, volume growth was down 11.5% YoY at 208 trillion British thermal units. Analysts at Geojit BNP Paribas believe the company’s ramp-up with capacity expansion will bode well for future opportunities that may come in with an increase in demand for natural gas. Analysts at Prabhudas Lilladher expect the Kochi plant’s increased capacity utilization to 30% from 19% in FY23 to help in increasing production.

Trendlyne Marketwatch

24 Feb 2022

Market closes in red, Sanofi India's net profit falls 35% YoY in Q3FY22

Trendlyne Analysis

Nifty 50 closed sharply lower losing 4.78% with Indian volatility index, India VIX soaring 30% as Russian forces attack targets across Ukraine after President Vladimir Putin ordered an operation to demilitarize the country. All other Asian indices closed in the red with the Hong Kong index, Hang Seng falling 3.2%. Russian Index plunged 50% at open fearing global sanctions.

All broader market indices close sharply lower with Nifty Smallcap 100 plunging over 6% to close in the red. Nifty PSU Bank closed over 8% lower than Wednesday's levels. Nifty IT closed sharply lower in line with the tech-heavy NASDAQ 100 futures, which is trading in the red.

Markets fell in today's trading. Nifty 50 closed at 16,247.95 (-815.3, -4.8%), BSE Sensex closed at 54,529.91 (-2,702.2, -4.7%) while the broader Nifty 500 closed at 13,775.70 (-731.3, -5.0%)

Market breadth is moving down. Of the 1,862 stocks traded today, 48 were in the positive territory and 1,811 were negative.

AIA Engineering, Gujarat Pipavav Port, Ajanta Pharma, and Cera Sanitaryware are trading with higher volumes as compared to Wednesday.
AUM Capital recommends 'Buy' on Deepak Fertilizers and Petrochemicals Corp. with a target price of Rs 627 on the back of a diversified product portfolio, market leadership in key segments, and an astounding demand outlook.
I CICI Securities maintains a ‘BUY’ rating on Crompton Greaves Consumer Electricals with a target price of Rs 504, indicating an upside of 24.8%. The brokerage expects a net profit CAGR of 8.6% over FY21-FY24E considering the 5% revenue synergy benefits from the acquisition of a 55% stake in Butterfly Gandhimathi Appliances for Rs 1,379.7 crore
Dabur partners with Indian Oil Corp to extend distribution of its entire bouquet of products to over 140 million Indian households. As a part of this arrangement, Indian Oil’s Indane LPG distributors will become new channel partners for this FMCG major and will aid it in expanding its market reach.
Oil and Gas stocks like Indraprastha Gas, Mahanagar Gas, Gujarat Gas and Petronet LNG are falling in trade today. This reaction comes after the brent crude oil hit $100/bbl mark for the first time since 2014 due to instensifying conflict between Russia and Ukraine.
Indus Towers is trading with less than 44 times its weekly average trading volume. Amara Raja Batteries, Sanofi India, Ujjivan Small Finance Bank, and Macrotech Developers are trading at less than three times their weekly average trading volumes.
PB Fintech is falling and hits a new low after CEO Yashish Dahiya, and CFO Alok Bansal, sold 6.09 million shares of the company via secondary market sale.
Bosch acquires a minority 26% stake in B2B eCommerce auto spares, garage equipment, and accessories Autozilla Solutions. The Hyderabad-based firm focuses on making procurement of spare parts hassle-free and digitally enabled. The acquisition of a minority stake allows Bosch to participate in a digital B2B marketplace for the independent aftermarket (IAM) in the domestic market, which helps it in easing auto spares procurement.
Sanofi India’s Q3FY22 profit falls 36% YoY to Rs 90.4 crore and revenues decrease by 4.5% to Rs 688 crore. The company declares a dividend of Rs 490 per share, which includes a special dividend of Rs 309 per share on the back of divestments
Tata Sons is looking to divest around 8% stake in Indian Hotels Company in the coming two weeks, according to reports. The promoter group will reduce its stake to 33% from 41% as a part of a Rs 2,000 crore qualified institutional placement.
PNC Infratech wins three new hybrid annuity modeled (HAM) national highway projects from NHAI worth Rs 4,384 crore. The company will complete these projects in next 2.5 years and operate these highways for 15 years post completion.
Vodafone Group plans to sell around 5% stake in Indus Towers to Bharti Airtel and use the proceeds for Vodafone Idea’s fundraising. The stake sale is valued around Rs 3,300 crore. Vodafone eventually plans to sell its entire stake of 28.1% (worth Rs 19,000 crore) in Indus Towers.