Indus Towers hits 52-week low after HSBC's 'Reduce' rating
Indus Towers shares took a hit on Monday after HSBC gave them a "Reduce" rating and set a target price of ₹310—about 11% lower than where the stock closed on Monday.
The bank pointed to slower tower rollouts from Bharti Airtel and uncertain demand from Vodafone Idea as big hurdles for the company.
Indus Towers's latest numbers
Indus Towers is a key player in India's telecom infrastructure, but its latest numbers aren't too cheerful.
Net profit dipped by 2.4% last quarter to ₹1,736 crore, and margins shrank to 54.5%.
New tower additions dropped sharply—from over 14,000 last quarter to just about 2,400 now—and tenancy additions fell sharply.
HSBC warns of uncertain demand and growth issues
HSBC thinks the current stock price already bakes in too much optimism.
While there could be some upside if Vodafone Idea raises funds or lease rates go up, bigger worries like muted sector demand and shaky growth keep things uncertain for Indus Towers going forward.