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

Valiant Commun.

Indus Towers

Sterlite Tech.

Vindhya Telelink

HFCL

Optiemus Infra

Suyog Telematics

GTL Infra.

ITI

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%

Negative results in Dec 25

PBT LESS OI(Q) At Rs 2,266.50 cr has Fallen at -24.8% (vs previous 4Q average)
PAT(Q) At Rs 1,775.90 cr has Fallen at -24.1% (vs previous 4Q average)

With ROCE of 25.8, it has a Expensive valuation with a 2.5 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 25.22%, its profits have fallen by -28.7%

High Institutional Holdings at 44.88%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Returns over the last 3 years

Along with generating 25.22% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

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, High Return

Absolute

Risk Adjusted

Volatility

Indus Towers

25.26%

0.88

28.69%

Sensex

8.49%

0.74

11.41%

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)

7.24

Debt to EBITDA (avg)

1.60

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

0.60

Tax Ratio

25.68%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

44.88%

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

3.20

EV to EBIT

12.20

EV to EBITDA

7.41

EV to Capital Employed

2.51

EV to Sales

4.11

PEG Ratio

Dividend Yield

ROCE (Latest)

25.76%

ROE (Latest)

25.92%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

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

4What is working for the Company

DEBT-EQUITY RATIO(HY)

Lowest at 0.58 times

DEBTORS TURNOVER RATIO(HY)

Highest at 6.50 times

-11What is not working for the Company

PBT LESS OI(Q)

At Rs 2,266.50 cr has Fallen at -24.8% (vs previous 4Q average

PAT(Q)

At Rs 1,775.90 cr has Fallen at -24.1% (vs previous 4Q average

Loading Valuation Snapshot...

Here's what is working for Indus Towers

Debt-Equity Ratio - Half Yearly

Lowest at 0.58 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Highest at 6.50 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Indus Towers

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2,266.50 cr has Fallen at -24.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 3,012.63 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 1,775.90 cr has Fallen at -24.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 2,339.60 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Non Operating Income - Quarterly

Highest at Rs 153.80 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income