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Indus Towers - Unlikely To Benefit From Vodafone Idea Capex In The Near Term: ICICI Securities

Indus Towers - Unlikely To Benefit From Vodafone Idea Capex In The Near Term: ICICI Securities

Birds sit on cables connected to a mobile phone telecommunications tower in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)
Birds sit on cables connected to a mobile phone telecommunications tower in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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).

Click on the attachment to read the full report:

ICICI Securities Indus Towers Company Update.pdf

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