Mumbai, April 15: Indus Towers faced pressure on its shares during Wednesday’s trading session as brokerage firm Jefferies downgraded its rating from ‘Buy’ to ‘Underperform’ and reduced the target price.
Jefferies has lowered the target price for Indus Towers from ₹530 to ₹375, indicating a potential decline of about 14% from current levels.
The downgrade reflects increasing risks concerning the company’s growth, cash flow, and valuation, according to Jefferies.
While the operating environment remains stable, uncertainties and structural pressures may limit the stock’s upward momentum in the near term.
The brokerage noted that the balance of risk and return for the company is no longer as attractive, as modest earnings growth and dividend yield fail to offset these concerns.
Jefferies has revised its revenue and profit (PAT) estimates down by 2% to 6%, projecting only 3% EPS growth and approximately 4% yield moving forward.
Following the downgrade, Indus Towers’ shares fell in the stock market, with the stock dropping nearly 4% to a day low of ₹420.50 during intraday trading on the NSE.
As of the time of writing (around 2:40 PM), the company’s shares were trading at ₹421.35, down 3.9%. The stock opened at ₹434.50 and reached a high of ₹436.90 during the day.
A significant concern for the company is the renewal of a large number of tower leases in fiscal year 2027, which could impact revenue and growth.
Many of the company’s tower sites are due for renewal between the second half of 2026 and the first half of 2027, potentially putting pressure on pricing.
Jefferies also warned that a slowdown in adding new towers in the telecom sector could increase competition for renewals. This may force the company to offer larger discounts or risk losing customers.
Moreover, if the company provides discounts to one telecom operator, it may have to extend similar discounts to other companies like Vodafone Idea and Bharti Airtel, affecting overall revenue.
Arpit Soni has had a passion for journalism since the beginning. Now he has turned this hobby into his profession. Arpit, who is a resident of Udaipur, enjoys editing and writing news related to journalism. He has worked as a Senior Content Producer in several important roles at Bhaskar, Patrika, Pratahkal, Punjab Kesari, and Times. Arpit completed his schooling in Udaipur and Jaipur. He has been working in the media industry for more than 10 years, and his journey is still continuing. ✍️📚
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