Why is Indus Towers Ltd ?
1
High Management Efficiency with a high ROCE of 17.43%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.37 times
3
Healthy long term growth as Net Sales has grown by an annual rate of 34.44% and Operating profit at 44.27%
4
With a growth in Net Profit of 80.04%, the company declared Very Positive results in Dec 24
- The company has declared positive results for the last 2 consecutive quarters
- PAT(Q) At Rs 4,003.20 cr has Grown at 112.3 %
- ROCE(HY) Highest at 22.31 %
- DEBT-EQUITY RATIO(HY) Lowest at 0.75 times
5
Technical trend is Sideways signifying no clear price momentum
- The technical trend has improved from Mildly Bearish on 08-Apr-25 and has generated 0.45% returns since then
6
With ROCE of 21.7, it has a Expensive valuation with a 2.4 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 13.99%, its profits have risen by 79.2% ; the PEG ratio of the company is 0.1
How much should you hold?
- Overall Portfolio exposure to Indus Towers should be less than 10%
- Overall Portfolio exposure to Telecommunication - Equipment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecommunication - Equipment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Indus Towers for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Indus Towers
13.99%
0.38
36.79%
SENSEX
0.45%
0.04
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
34.44%
EBIT Growth (5y)
44.27%
EBIT to Interest (avg)
7.83
Debt to EBITDA (avg)
1.74
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.56
Tax Ratio
24.65%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
43.95%
ROCE (avg)
16.04%
ROE (avg)
23.03%
Valuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
13
Price to Book Value
3.50
EV to EBIT
8.53
EV to EBITDA
5.91
EV to Capital Employed
2.44
EV to Sales
4.07
PEG Ratio
0.13
Dividend Yield
NA
ROCE (Latest)
21.68%
ROE (Latest)
26.56%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
29What is working for the Company
PAT(Q)
At Rs 4,003.20 cr has Grown at 112.3 %
ROCE(HY)
Highest at 22.31 %
DEBT-EQUITY RATIO(HY)
Lowest at 0.75 times
PBDIT(Q)
Highest at Rs 6,958.10 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 92.19%
PBT LESS OI(Q)
Highest at Rs 5,135.00 cr.
NET SALES(Q)
Highest at Rs 7,547.40 cr
EPS(Q)
Highest at Rs 15.17
-9What is not working for the Company
INTEREST(HY)
At Rs 672.10 cr has Grown at 25.65%
Loading Valuation Snapshot...
Here's what is working for Indus Towers
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 5,135.00 cr has Grown at 110.5 %
over average PBT of the previous four quarters of Rs 2,439.90 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 4,003.20 cr has Grown at 112.3 %
over average PAT of the previous four quarters of Rs 1,885.75 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 6,958.10 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 92.19% and Grown
each quarter in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 5,135.00 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 4,003.20 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.75 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales - Quarterly
Highest at Rs 7,547.40 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 15.17
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Indus Towers
Interest - Half Yearly
At Rs 672.10 cr has Grown at 25.65%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)