Indus Towers Ltd. share price target

BHIN is currently trading at 11x and 10x FY19/20E EV/e. Sell with a TP of Rs 387 @ 10x Sep-19E EV/e Bharti Infratels (BHIN) 2QFY18 revenue and EBITDA were in-line, led by higher energy margin. But operating performance was weak owing to feeble rental/tenant and the meagre new tenants addition. Street optimism on BHIN is driven by the prospect of better capital allocation via the likely acquisition of Vodafone and Ideas stake in Indus. This may be followed by BHINs parent Bharti diluting in favour of a consortium of investors. We dont see this as a game-changer, except for plugging the DDT leak.

The three leading wireless telecommunications service providers in India by revenue - Bharti Airtel, Vodafone and Idea Cellular are the largest customers of Bharti Infratel. The company has been the industry pioneer in adopting green energy initiatives for its operations. Q-o-Q September 2017 quarter consolidated results...

ICICI Securities Ltd | Retail Equity Research Revenues (on a proportionate consolidation basis) came in at | 3648.2 crore, up 10.8% YoY, 3.5% QoQ, slightly higher than our estimate of | 3637.3 crore aided by energy revenues that came in at | 1383.8 crore vs. our estimate of | 1333.4 crore. Core rental revenues grew 9.2% YoY to | 2264.4 crore, lower than our estimate of | 2303.9, as sharing revenues per tower declined 1% QoQ. Net colocations addition at 1687 were lower than our estimates of 4588, as the company witnessed the impact of exits of 2,711, reflecting the...

Colocation exits may put pressure on growth Rental revenue/EBITDA disappoints: Consol. revenue increased 3.5% QoQ (+11% YoY) to INR36.5b (in-line), despite flat QoQ rental revenue (at INR22.6b; 1% miss), offset by a 9% QoQ rise in energy revenue. Consol. EBITDA rose 2.5% QoQ (+11% YoY) to INR16.1b (in-line), with the margin down ~40bp QoQ at 44.3% (40bp miss). This was led by rental EBITDA decline of 2% QoQ to INR14.9b, offset by nearly doubling of energy EBITDA. Lower finance income pulled down PAT by 4% QoQ to INR6.4b....

Consol. 2Q FY18 EBITDA of INR 16.34bn [+12.4% yoy] was 1.2% below our forecast. Core EBITDA [+9.3%] miss of 3.5% was driven entirely by revenues [+9.2%], as net tenancy-adds crashed 78% qoq to 1687 [-30%]gross adds halved qoq to 4398 and tenancy churn or exits surged by 136% to 2711 in 2Q, vs. an average of 723 in the previous four quarters. We maintain FY18 will likely be the last year of double-digit EBITDA growth for BHIN. While tenancy adds from Jio should remain strong, the underlying losses would continue, as smaller telcos are rushing for the exit door. Moreover, Idea/Voda merger will result in significant tenancy losses, likely from FY19....

Bharti Infratel (BHIN) recorded highest tenancies (7K gross) in Q1FY18 on accelerated data rollouts by Top 3 incumbents and material benefits from RJio rollouts (esp. BHIN standalone).In-line revenue, higher EBITDA and lower PAT (on higher tax) summarize Q1FY18 performance.

ICICI Securities Ltd | Retail Equity Research Revenues (on a proportionate consolidation basis) came in at | 3523.9 crore, up 9.8% YoY and flattish QoQ, slightly lower than our estimates on | 3543.9 crore owing to lower energy revenues that was at | 1264.4 crore vs. our estimate of | 1302 crore. Core rental revenues grew 9.8% YoY to | 2259.5 crore. The co-locations addition at 7795 was much ahead of our estimates of 5299, as the company remained a beneficiary of Jio's incremental tenancy addition along...

Revenue grew by 4.92% to Rs. 1605.3 Cr in Q4FY17 when compared to the previous quarter. Also it rose by 13.2% when compared with Q4FY16.

ICICI Securities Ltd | Retail Equity Research Revenues (on a proportionate consolidation basis) came in at | 3520.4 crore, up 10.6% YoY and 3.5% QoQ, slightly higher than our estimate of | 3457.7 crore led by higher-than-expected energy revenues. The co-locations addition at 5672 was largely in line with our estimates of 5509, as the company remains a beneficiary of Jio's incremental tower addition and ended the year with total colocations of 210606 (average tenancy ratio at 2.30x, up 2.7% QoQ) EBITDA came in at | 1572.3 crore (I-direct estimate of | 1515.7 crore),...