Why Is CLSA Extremely Bullish on Indus Towers’ Long-Term Growth Story?
CLSA Maintains High Conviction Outperform
CLSA maintained its “High Conviction Outperform” rating on Indus Towers and increased confidence in the company’s long-term tenancy growth opportunity.
The brokerage assigned a target price of ₹580 and highlighted strong tower and tenancy additions led by Bharti Airtel and Vodafone Idea.
India’s telecom infrastructure sector continues benefiting from rapid data consumption and network expansion.
Key CLSA Highlights
🔹 FY26 twin tenants increased towers by around 20,000.
🔹 Estimated tenancy additions at 30,000–40,000.
🔹 FY26–FY29 cumulative tower additions forecast at 36,000.
🔹 Tenancy additions projected at 77,000.
🔹 Potential upside tenancy additions may reach 1.01–1.23 lakh.
🔹 EBITDA CAGR forecast may improve from 10% to 11–12%.
🔹 90% of EBITDA linked to long-term contracts with annual escalations.
🔹 Valuation considered attractive at 6x EV/EBITDA.
Telecom infrastructure companies remain major beneficiaries of India’s rising mobile-data consumption and 5G network rollout.
Why Telecom Tower Companies Matter
🔹 Increasing smartphone penetration drives data demand.
🔹 5G rollout requires additional telecom infrastructure.
🔹 Tower tenancy growth improves operational leverage.
🔹 Long-term contracts improve revenue visibility.
🔹 Strong free cash flow supports dividend potential.
Investor Takeaway
CLSA remains highly bullish on Indus Towers due to strong tenancy growth visibility, recurring cash flows and attractive valuations.
Derivative Pro & Nifty Expert Gulshan Khera, CFP® believes investors should monitor telecom capex trends, tenancy additions and 5G expansion while evaluating telecom infrastructure stocks.
Read more telecom and earnings analysis at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice.
