Street Calls of the Week
Investing.com - HSBC initiated coverage on Indus Towers Ltd (NSE:INDUSTOW) with a Reduce rating and a price target of INR310.00 on Tuesday.
The investment bank cited concerns about the company’s growth outlook, noting that while Indus is India’s leading mobile tower infrastructure provider with Bharti Airtel as its controlling shareholder and anchor tenant, Airtel’s network rollout is expected to slow down.
HSBC highlighted that Indus’s future growth largely depends on Vodafone Idea’s network expansion plans, which remain uncertain due to insufficient operating cash flows to meet statutory obligations.
The bank also pointed to declining lease rentals for Indus over the years, referencing case studies from Indonesia and China that suggest tower companies owned by mobile network operators typically lack pricing power.
These factors collectively contribute to what HSBC describes as a "muted growth outlook" for Indus Towers, leading to the cautious stance on the stock.
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