⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
INDUSTOWER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | INDUSTOWER | Market Cap | 1,11,933 Cr. | Current Price | 424 ₹ | High / Low | 455 ₹ |
| Stock P/E | 12.0 | Book Value | 137 ₹ | Dividend Yield | 0.00 % | ROCE | 29.0 % |
| ROE | 32.4 % | Face Value | 10.0 ₹ | DMA 50 | 416 ₹ | DMA 200 | 387 ₹ |
| Chg in FII Hold | -0.29 % | Chg in DII Hold | 0.71 % | PAT Qtr | 1,837 Cr. | PAT Prev Qtr | 1,734 Cr. |
| RSI | 49.7 | MACD | 3.35 | Volume | 51,67,207 | Avg Vol 1Wk | 80,25,080 |
| Low price | 313 ₹ | High price | 455 ₹ | PEG Ratio | 0.74 | Debt to equity | 0.58 |
| 52w Index | 78.2 % | Qtr Profit Var | -17.4 % | EPS | 35.4 ₹ | Industry PE | 14.6 |
📊 Core Financials
- Revenue & Profitability: PAT improved from 1,734 Cr. to 1,837 Cr. QoQ, though quarterly profit variation shows -17.4%, indicating some earnings pressure.
- Margins: ROE at 32.4% and ROCE at 29.0% are excellent, reflecting strong efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 0.58 is moderate, manageable for a capital-intensive business.
- Cash Flow: Dividend yield of 0.00% suggests reinvestment focus, with no direct shareholder payout.
💹 Valuation Indicators
- P/E Ratio: 12.0 vs Industry PE of 14.6 → undervalued compared to peers.
- P/B Ratio: Current Price (424 ₹) / Book Value (137 ₹) ≈ 3.09, moderately expensive relative to book value.
- PEG Ratio: 0.74 indicates valuation is reasonable relative to growth prospects.
- Intrinsic Value: Current price near DMA 50 (416 ₹) and above DMA 200 (387 ₹), suggesting technical strength and fair valuation.
🏦 Business Model & Competitive Advantage
- Indus Towers operates as India’s largest telecom tower infrastructure provider, enabling mobile connectivity across the country.
- Competitive advantage lies in scale, long-term contracts with telecom operators, and strong market positioning.
- Overall health is robust, with high returns and moderate leverage, though earnings volatility needs monitoring.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive entry between 410 ₹ – 430 ₹, near support levels.
- Long-Term Holding: Suitable for investors seeking telecom infrastructure exposure, with strong fundamentals and undervaluation relative to peers.
✅ Positive
- Strong ROE (32.4%) and ROCE (29.0%).
- Undervalued compared to industry PE (12.0 vs 14.6).
- Moderate debt-to-equity ratio (0.58).
- Consistent PAT growth despite sector challenges.
⚠️ Limitation
- Dividend yield of 0.00% limits shareholder reward.
- P/B ratio (3.09) indicates moderately expensive valuation.
- Quarterly profit variation (-17.4%) shows earnings inconsistency.
📉 Company Negative News
- FII holdings decreased (-0.29%), showing reduced foreign investor confidence.
- High earnings volatility despite strong fundamentals.
📈 Company Positive News
- DII holdings increased (+0.71%), reflecting strong domestic institutional support.
- PAT improved QoQ, showing operational strength.
🏭 Industry
- Industry PE at 14.6 is higher than Indus Towers’ PE, highlighting undervaluation.
- Telecom infrastructure sector growth driven by rising data consumption and 5G rollout.
- Indus Towers benefits from scale and long-term contracts with major telecom operators.
🔎 Conclusion
- Indus Towers offers strong fundamentals with excellent return ratios and moderate leverage.
- Valuation is attractive compared to industry peers, making it a good long-term holding.
- Best suited for investors entering near 410–430 ₹, with potential upside as telecom demand and 5G expansion accelerate.