Indus Towers Ltd is India’s largest telecom tower infrastructure company, operating over 220,000 towers and enabling more than 340,000 colocations across all 22 telecom circles. Backed by Bharti Airtel (holding ~50%), the company offers long-term revenue visibility, steady cash flows, and a crucial position in India’s telecom value chain—especially as the country rapidly expands its 5G infrastructure.
In Q4 FY25, the company reported a standalone revenue of ₹7,727 crore, up 7.4% year-on-year. Consolidated revenue also rose to ₹7,547 crore. Net profit margins remain robust at around 33%, while the return on equity (ROE) stands strong at 30–33%. Operating efficiency is also reflected in the return on capital employed (ROCE), which is approximately 28.6%.
Liquidity remains healthy, with ₹33.4 billion in cash and short-term investments, positive working capital of ₹31.4 billion, and operating cash flow of ₹11,582 crore in FY2024. The company has a manageable debt-to-equity ratio of ~0.65 and net debt around ₹178 billion. Valuation metrics are attractive: a price-to-earnings (P/E) ratio near 10.8x and EV/EBITDA of ~5.6x suggest the stock is undervalued relative to its cash-generating strength. The Piotroski F-score of 7–8 reflects solid financial health.
Overall, the fundamentals indicate that Indus Towers is a stable, cash-rich business with long-term growth potential linked to telecom and data consumption growth in India.
📉 Technical Outlook
The 2-hour chart reflects a significant breakout pattern. A long-standing descending trendline has acted as dynamic resistance since April, repeatedly pushing the price lower. However, recent price action shows a strong breakout above this trendline, accompanied by bullish candles and higher volume.
The reversal zone between ₹388–392 acted as a key support area where buyers stepped in. The breakout above this zone followed by a push beyond the ₹404–408 zone signals strong upside momentum.
Key levels to monitor:
Close Above ₹408: Confirms the breakout and initiates bullish momentum.
Resistance Targets: ₹424 (R1), ₹438 (R2), and ₹462 (R3).
Support Zone: ₹388–392 remains a demand area. A move below this may invalidate the setup.
The pattern suggests a shift from lower highs to potential higher highs, which can attract swing and positional traders.
✅ Conclusion
Indus Towers is a classic case where fundamentals and technicals align. On one hand, it boasts strong earnings, consistent cash flow, low valuation, and strategic importance in India’s 5G rollout. On the other, the recent breakout from a long-term resistance trendline shows a potential trend reversal on the chart.
For investors and traders, this confluence presents a compelling opportunity. An entry in the ₹404–408 range could yield solid returns, with targets at ₹424, ₹438, and ₹462. A stop-loss below ₹388 is advisable to manage risk.
Disclaimer: lnkd.in/gJJDnvn2
In Q4 FY25, the company reported a standalone revenue of ₹7,727 crore, up 7.4% year-on-year. Consolidated revenue also rose to ₹7,547 crore. Net profit margins remain robust at around 33%, while the return on equity (ROE) stands strong at 30–33%. Operating efficiency is also reflected in the return on capital employed (ROCE), which is approximately 28.6%.
Liquidity remains healthy, with ₹33.4 billion in cash and short-term investments, positive working capital of ₹31.4 billion, and operating cash flow of ₹11,582 crore in FY2024. The company has a manageable debt-to-equity ratio of ~0.65 and net debt around ₹178 billion. Valuation metrics are attractive: a price-to-earnings (P/E) ratio near 10.8x and EV/EBITDA of ~5.6x suggest the stock is undervalued relative to its cash-generating strength. The Piotroski F-score of 7–8 reflects solid financial health.
Overall, the fundamentals indicate that Indus Towers is a stable, cash-rich business with long-term growth potential linked to telecom and data consumption growth in India.
📉 Technical Outlook
The 2-hour chart reflects a significant breakout pattern. A long-standing descending trendline has acted as dynamic resistance since April, repeatedly pushing the price lower. However, recent price action shows a strong breakout above this trendline, accompanied by bullish candles and higher volume.
The reversal zone between ₹388–392 acted as a key support area where buyers stepped in. The breakout above this zone followed by a push beyond the ₹404–408 zone signals strong upside momentum.
Key levels to monitor:
Close Above ₹408: Confirms the breakout and initiates bullish momentum.
Resistance Targets: ₹424 (R1), ₹438 (R2), and ₹462 (R3).
Support Zone: ₹388–392 remains a demand area. A move below this may invalidate the setup.
The pattern suggests a shift from lower highs to potential higher highs, which can attract swing and positional traders.
✅ Conclusion
Indus Towers is a classic case where fundamentals and technicals align. On one hand, it boasts strong earnings, consistent cash flow, low valuation, and strategic importance in India’s 5G rollout. On the other, the recent breakout from a long-term resistance trendline shows a potential trend reversal on the chart.
For investors and traders, this confluence presents a compelling opportunity. An entry in the ₹404–408 range could yield solid returns, with targets at ₹424, ₹438, and ₹462. A stop-loss below ₹388 is advisable to manage risk.
Disclaimer: lnkd.in/gJJDnvn2
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