Indus Towers Ltd. share price target

Indus Towers' consolidated EBITDA grew 2.1% QoQ to INR37b with rental EBITDA growth of 2% QoQ, mainly originating from rental rates (which saw a 1% one-off gain) and 2.5k tenancy additions. The last few quarters have seen decent tenancy additions. However, a) reducing penalty receipts of ~INR7b from VIL in FY23E, b) upcoming tenancy renewals in Mar'22 and c) the weak liquidity position of VIL (seen in rising receivables) pose earnings risk for Indus Towers. We estimate a 4.2%...

EBITDA was at | 3699 crore, up 2.1% QoQ, with margins at 53.4% (up 70 bps QoQ). Receivables were up by ~| 1600 crore QoQ to | 7351 crore, with debtor days at ~97 days vs. ~76 days in Q2 &~54 days as on FY21 What should investors do? Indus' share price has delivered merely ~9% return...

The company reported net addition of 2917 co-locations (~3123 on gross basis). Revenues came in at | 6797 crore, up 4.7% QoQ. Rental revenues were at | 4211 crore, up 1.7% QoQ while energy revenues were at | 2586...

Bharti Infratel (BHIN) Q2FY21 was operationally healthy lead by strong tower additions, tenancy growth and rental/tenant. Energy spread was negative for 2nd consecutive quarter. BHIN's short-term prognosis remains significantly positive led by potential tariff increase in the telecom sector and/or fund-raise by VIL. More importantly, BHIN-Indus merger would conclude within a month and the combined entity would declare a dividend of Rs 48bn (Rs 17.8/sh ~9.5% yield) within 3Ms. We have marginally increased our estimates to factor in the robust growth....

Bharti Infratel Ltd (BHIN) the market leader in the domestic telecom tower space is a proxy play on Indias telecom story. At present its consolidated asset base comprises of 95,801 towers (~20% of the industry) and post-merger with Indus Towers, its asset base would grow to ~1,70,000 towers, thereby consolidating its market share to ~30%.