Indus Towers - Unlikely To Benefit From Vodafone Idea Capex In The Near Term: ICICI Securities
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ICICI Securities Report
Indus Towers Ltd.’s stock price increased more than 20% post government reform in the telecom sector announced a few days ago, which has increased Vodafone Idea Ltd.’s going concern visibility.
However, Vodafone Idea still has a long way to go as it needs tariff hike and recouping of some market share.
Even in a bull case where Vodafone Idea incurs capex to catch up on 4G capacity gap compared to Bharti Airtel Ltd., we don’t see material benefit to Indus Towers.
Our analysis shows Vodafone Idea does not need much of cellsite addition, but it needs to expand 4G base transceiver station which comes at marginal cost (loading charges).
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