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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

HFCL

Valiant Commun.

Indus Towers

ADC India

Sterlite Tech.

Vindhya Telelink

Optiemus Infra

GTL Infra.

ITI

Tejas Networks

Pace Digitek

Why is Indus Towers Ltd ?

High Management Efficiency with a high ROCE of 20.01%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.18 times

Healthy long term growth as Net Sales has grown by an annual rate of 18.42% and Operating profit at 19.86%

Flat results in Mar 26

PAT(9M) At Rs 5,408.10 cr has Grown at -32.45%
ROCE(HY) Lowest at 18.41%
PBT LESS OI(Q) Lowest at Rs 2,210.10 cr.

With ROCE of 19.5, it has a Expensive valuation with a 2.3 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 8.46%, its profits have fallen by -28.1%

High Institutional Holdings at 44.77%

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 8.46% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

With its market cap of Rs 1,11,476 cr, it is the biggest company in the sector and constitutes 50.78% of the entire sector

Its annual Sales of Rs 32,493.10 are 56.69% of the industry

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

8.36%

0.31

27.36%

Sensex

-8.84%

-0.67

13.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.42%

EBIT Growth (5y)

19.86%

EBIT to Interest (avg)

7.43

Debt to EBITDA (avg)

1.42

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

0.62

Tax Ratio

25.56%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

44.77%

ROCE (avg)

19.93%

ROE (avg)

22.34%

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

2.85

EV to EBIT

11.98

EV to EBITDA

7.19

EV to Capital Employed

2.34

EV to Sales

3.95

PEG Ratio

Dividend Yield

ROCE (Latest)

19.51%

ROE (Latest)

18.02%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

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

5What is working for the Company

DEBT-EQUITY RATIO(HY)

Lowest at 0.53 times

DEBTORS TURNOVER RATIO(HY)

Highest at 6.58 times

-7What is not working for the Company

PAT(9M)

At Rs 5,408.10 cr has Grown at -32.45%

ROCE(HY)

Lowest at 18.41%

PBT LESS OI(Q)

Lowest at Rs 2,210.10 cr.

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Here's what is working for Indus Towers

Debt-Equity Ratio - Half Yearly

Lowest at 0.53 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 6.58 times and Grown

each half year 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 After Tax (PAT) - Latest six months

At Rs 3,568.80 cr has Grown at -38.28%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 2,210.10 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

Highest at Rs 155.20 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income