Indus Towers Ltd (INDUSTOWER) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Indus Towers

Valiant Commun.

Sterlite Tech.

Vindhya Telelink

Optiemus Infra

ITI

Suyog Telematics

HFCL

GTL Infra.

Tejas Networks

Pace Digitek

Why is Indus Towers Ltd ?

High Management Efficiency with a high ROCE of 19.85%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.40 times

Healthy long term growth as Net Sales has grown by an annual rate of 36.10% and Operating profit at 43.71%

Flat results in Sep 25

PBT LESS OI(Q) At Rs 2,395.50 cr has Fallen at -23.5% (vs previous 4Q average)
PAT(Q) At Rs 1,839.30 cr has Fallen at -24.5% (vs previous 4Q average)
DEBT-EQUITY RATIO(HY) Highest at 1.66 times

With ROCE of 25.8, it has a Expensive valuation with a 2.4 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 14.36%, its profits have risen by 24.1% ; the PEG ratio of the company is 0.4

Rising Promoter Confidence

Promoters have increased their stake in the company by 1.03% over the previous quarter and currently hold 51.03% of the company
Promoters increasing their stake is a sign of high confidence in the future of the business

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Indus Towers should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Indus Towers for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Indus Towers

14.36%

0.48

30.14%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

36.10%

EBIT Growth (5y)

43.71%

EBIT to Interest (avg)

7.10

Debt to EBITDA (avg)

1.60

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

0.60

Tax Ratio

24.49%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

44.45%

ROCE (avg)

19.14%

ROE (avg)

24.02%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.04

EV to EBIT

9.31

EV to EBITDA

6.21

EV to Capital Employed

2.40

EV to Sales

4.00

PEG Ratio

0.44

Dividend Yield

ROCE (Latest)

25.76%

ROE (Latest)

25.92%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

NET SALES(Q)

Highest at Rs 8,188.20 cr

-7What is not working for the Company

PBT LESS OI(Q)

At Rs 2,395.50 cr has Fallen at -23.5% (vs previous 4Q average

PAT(Q)

At Rs 1,839.30 cr has Fallen at -24.5% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at 1.66 times

Loading Valuation Snapshot...

Here's what is working for Indus Towers

Net Sales - Quarterly

Highest at Rs 8,188.20 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Here's what is not working for Indus Towers

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2,395.50 cr has Fallen at -23.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 3,130.30 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 1,839.30 cr has Fallen at -24.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 2,435.65 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 1.66 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio