Indus Towers shares slip 5%, hit 52-week low; what's rattling investors?

Indus Towers slipped 5.1 per cent on Wednesday and registered an intra-day low at ₹312.6 per share on BSE; here's why

Indus Towers shares slipped 5.1 per cent on Wednesday and hit a 52-week low at ₹312.6 per share on BSE. At 9:40 AM, Indus Towers' share price was trading 5.1 per cent lower at ₹312.8 per share. In comparison, the BSE Sensex was down 0.08 per cent at 80,089.95.

 

The market capitalisation of the company stood at ₹82,521.73 crore. The 52-week high of the stock was at ₹444.45 per share, and the 52-week low was at ₹312.6.

 

In one year, Indus Towers shares rose 25.4 per cent, as compared to Sensex’s decline of 2.9 per cent.  CATCH STOCK MARKET UPDATES TODAY LIVE

 

Why did Indus Towers' shares decline in trade? 

The selling pressure came after two key developments. First, the company’s board approved its foray into African markets, beginning with Nigeria, Uganda, and Zambia.

 

“These markets offer attractive prospects for revenue diversification, operational scalability, and long-term value creation,” the company said. 

 

It added: The company will leverage its robust financial position and anchor customer relationship with Bharti Airtel to establish a strong and competitive presence in these regions. As part of its broader growth strategy, the company will continue to evaluate expansion opportunities in other African markets where Airtel has an established presence.

 

Meanwhile, Emkay Gloabl Financial Services sees this capital allocation unfavourable, considering the consistent currency depreciation and challenges in dividend upstreaming from Africa.  "We note that due to the same reasons, African tower companies, like telecom players, are trading at a discount to global peers. We await more clarity on the quantum and timing of its Africa foray before revisiting our stance; we may consider downgrading in case of significant capital deployment in the Africa business," the brokerage noted.  Emkay maintained a 'Buy' on Indus Towers given its attractive valuations (FY26E EV/Ebitda: 6.3x) and strong cash flow yield (FY26E: 7 per cent). The brokerage set its target at ₹410 per share.   Further, according to reports, CLSA said that Indus Towers' plan of revenue diversification is unlikely to be significant as Nigeria, Uganda, and Zambia account for less than 500 towers out of the 37,579 towers of Airtel Africa, of which the company owns 2,179.

 

CLSA added further that it expected the management to focus on the company's capital structure by paying out high dividends. It is also called the delay in dividends to be unjustified.  ALSO READ | TBO TEK surges 15%, hits 6-month high; what's driving travel related stock? 

The brokerage maintained its "high conviction" outperform stance on Indus Towers, but cut its price target to ₹520 from ₹595.

 

Citi also reportedly maintained a "Buy" on Indus Towers with a ₹460 target. While investors worry about dividend payouts, Vodafone Idea’s sustainability, and a slowdown in Bharti Airtel’s rollout, Citi said these concerns look overdone. 

 

With capex intensity moderating, the firm sees scope for medium-term growth and strong free cash-flow generation, leaving room for future returns. Valuations remain attractive against peers, and Citi’s bear-case analysis points to limited downside.  Secondly, 2.01 million shares changed hands through a block deal, according to data compiled by Bloomberg. The dealers of the transactions were not known. 

 

BSE shareholding pattern shows promoters—Bharti Airtel— held 50 per cent stake in Indus Towers as of the June quarter. Among public shareholders, Kotak Mahindra Trustee held 1.52 per cent stake and SBI Arbitrage Opportunities held 3.81 per cent stake.