Strong valuations, sector package to sustain rally in Indus Towers

Stake sale by telcos, higher ESG ranking, capex rollout other triggers

Tower infrastructure services provider Indus Towers has gained about 25 per cent over the last month with half the gains coming in the last few trading sessions. The street believes that the telecom relief package will keep Vodafone India (VIL) afloat ensuring revenue visibility and remove the tenancy overhang for now. The rollout of 5G networks, infrastructure sharing and improved rating on environment, social and governance (ESG) parametres are other factors which may lead to higher investor interest in the stock.

The key trigger, however, has been the relief package for the sector which will ensure survival for its major