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Last Updated on: 22 May, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 534816 | NSE: INDUSTOWER

Fundamental Analysis of Indus Towers Ltd

Basic Stock Data

Last Updated: May 22, 2024, 8:39 pm

Market Cap 91,493 Cr.
Current Price 340
High / Low367/142
Stock P/E15.2
Book Value 100
Dividend Yield0.00 %
ROCE20.2 %
ROE25.1 %
Face Value 10.0
PEG Ratio3.26

Data Source: screener.in

Competitors of Indus Towers Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Shyam Telecom Ltd 18.1 Cr. 16.119.9/6.01 23.20.00 %%% 10.0
Prabhat Technologies (India) Ltd 107 Cr. 100330/85.0 27.80.00 %2.10 %3.87 % 10.0
NELCO Ltd 1,681 Cr. 737894/59871.0 54.20.27 %22.8 %20.8 % 10.0
Optiemus Infracom Ltd 2,364 Cr. 275381/19847.3 44.90.54 %13.5 %11.7 % 10.0
ADC India Communications Ltd 529 Cr. 1,1511,310/66041.0 1250.35 %21.8 %16.0 % 10.0
Industry Average939.82 Cr455.8231.8655.020.23%12.04%10.47%10.00

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales6,4926,7976,8766,9277,1166,8977,9676,7656,7537,0767,1327,1997,193
Expenses3,0803,2803,2563,2293,0544,6355,1555,6023,3203,5963,7113,6153,122
Operating Profit3,4123,5173,6203,6994,0622,2622,8111,1633,4333,4803,4223,5844,072
OPM %53%52%53%53%57%33%35%17%51%49%48%50%57%
Other Income775793941099263-403116569799108
Interest36237736437937537239235433635224611127
Depreciation1,3321,3201,3161,3241,3651,3391,3071,3581,3201,3741,5261,5961,564
Profit before tax1,7961,8772,0332,0892,4316431,175-9521,8931,8101,7472,0762,489
Tax %24%25%23%25%25%26%26%26%26%26%26%26%26%
Net Profit1,3641,4151,5581,5711,828477872-7081,3991,3481,2951,5401,853
EPS in Rs5.065.255.785.836.781.773.23-2.635.195.004.805.726.88

Last Updated: May 10, 2024, 4:11 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 6, 2024, 3:42 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales10,27210,82711,6685,5586,0856,6216,8266,74313,95427,71728,38228,601
Expenses6,4656,4276,6643,0703,2603,4643,7143,1856,77512,81618,71314,044
Operating Profit3,8074,4005,0042,4882,8253,1573,1123,5587,17914,9019,66914,557
OPM %37%41%43%45%46%48%46%53%51%54%34%51%
Other Income3384495221,6791,9601,5991,5591,8461,26245885361
Interest394400290333946533358361,6031,670735
Depreciation2,2202,1262,1851,1551,1661,1801,0661,2822,8485,3255,3246,060
Profit before tax1,5312,3233,0522,9793,5803,5293,5533,7884,7578,4312,7598,122
Tax %35%35%35%25%23%29%30%13%21%24%26%26%
Net Profit1,0021,5181,9922,2472,7472,4942,4943,2993,7796,3732,0406,036
EPS in Rs5.318.0310.5211.8514.8513.4813.4817.8314.0223.657.5722.40
Dividend Payout %104%55%105%25%108%104%111%59%143%47%-0%-0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)51.50%31.23%12.80%22.25%-9.21%0.00%32.28%14.55%68.64%-67.99%195.88%
Change in YoY Net Profit Growth (%)0.00%-20.27%-18.42%9.45%-31.46%9.21%32.28%-17.73%54.09%-136.63%263.87%

Growth

Compounded Sales Growth
10 Years:10%
5 Years:33%
3 Years:27%
TTM:1%
Compounded Profit Growth
10 Years:16%
5 Years:22%
3 Years:19%
TTM:187%
Stock Price CAGR
10 Years:4%
5 Years:5%
3 Years:12%
1 Year:138%
Return on Equity
10 Years:18%
5 Years:22%
3 Years:22%
Last Year:25%

Last Updated: May 20, 2024, 12:59 pm

Balance Sheet

Last Updated: May 6, 2024, 3:42 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital1,8891,8891,8941,8971,8501,8501,8501,8502,6952,6952,6952,695
Reserves15,30416,14915,12616,34513,65015,11512,68211,69313,18219,45618,41524,344
Borrowings3,5233,3422,582-0278-064,62721,57619,72619,18520,531
Other Liabilities6,9777,2557,5522,4615,1632,6612,5771,5847,4916,0916,2788,298
Total Liabilities27,69328,63627,15520,70320,94119,62517,11519,75444,94447,96846,57255,868
Fixed Assets16,32415,32014,8126,0635,7945,5955,3326,71431,80031,82632,38439,300
CWIP172153226705811011854274179355422
Investments3,8917,4805,88210,05911,17212,3279,90611,1702,2711,6522763
Other Assets7,3065,6826,2344,5113,9161,5931,7591,81510,59814,31113,55916,143
Total Assets27,69328,63627,15520,70320,94119,62517,11519,75444,94447,96846,57255,868

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 3,6513,9523,9901,9122,8663,4693,1592,3157,4819,1217,90511,582
Cash from Investing Activity -5,794-2,340-9371,548-237-1,8551,600-1,0121,798-2,174-1,730-7,546
Cash from Financing Activity 2,223-1,500-3,188-1,453-2,671-3,555-4,795-1,185-9,377-5,982-7,133-3,996
Net Cash Flow80112-1362,007-42-1,940-36118-98966-95841

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow0.001.003.002.00-276.003.00-3.00-1.00-14.00-5.00-10.00-6.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days3010111318152920100936382
Inventory Days
Days Payable
Cash Conversion Cycle3010111318152920100936382
Working Capital Days18-85-101-42-190-41-24-527523970
ROCE %10%12%15%14%18%23%21%23%19%25%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters69.85%69.85%69.85%67.49%68.81%68.99%68.99%68.99%68.99%68.99%68.99%68.99%
FIIs26.76%26.83%26.08%28.23%26.62%26.50%26.60%26.62%23.94%21.41%20.71%16.40%
DIIs2.65%2.62%3.16%2.93%2.96%2.92%2.87%2.47%4.51%6.69%7.08%9.90%
Public0.72%0.68%0.88%1.33%1.59%1.57%1.50%1.89%2.53%2.90%3.18%4.68%
Others0.02%0.02%0.03%0.02%0.02%0.02%0.01%0.03%0.02%0.01%0.04%0.04%
No. of Shareholders1,10,9431,17,8961,53,7081,97,7822,07,6072,33,2762,30,2422,58,9972,71,6792,64,6742,67,1083,10,694

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Motilal Oswal Midcap Fund13,383,9204.34389.67
Motilal Oswal Flexi Cap Fund13,158,6603.97383.11
Nippon India Growth Fund11,000,0001.29320.27
360 ONE Focused Equity Fund10,399,4464.46302.78
Nippon India Arbitrage Fund5,188,4001.09151.06
Nippon India Power & Infra Fund4,500,0002.89131.02
HDFC Arbitrage Fund - Regular Plan3,967,8001.06115.52
HDFC Arbitrage Fund - Wholesale Plan3,967,8001.06115.52
Edelweiss Arbitrage Fund3,763,8001.2109.58
HSBC Arbitrage Fund2,502,4003.6472.86

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)22.407.5723.6517.5217.84
Diluted EPS (Rs.)22.407.5723.6517.5217.84
Cash EPS (Rs.)44.8827.3243.4121.3817.30
Book Value[Excl.RevalReserv]/Share (Rs.)100.3378.3382.1958.9173.22
Book Value[Incl.RevalReserv]/Share (Rs.)100.3378.3382.1958.9173.22
Revenue From Operations / Share (Rs.)106.13105.32102.8551.7836.46
PBDIT / Share (Rs.)59.5437.2256.9928.1121.75
PBIT / Share (Rs.)37.0617.4637.2317.5414.82
PBT / Share (Rs.)30.1410.2431.2814.4413.01
Net Profit / Share (Rs.)22.407.5723.6510.8110.37
NP After MI And SOA / Share (Rs.)22.407.5723.6514.0217.83
PBDIT Margin (%)56.1035.3355.4154.2859.66
PBIT Margin (%)34.9116.5836.2033.8740.66
PBT Margin (%)28.399.7230.4127.8835.69
Net Profit Margin (%)21.107.1822.9920.8728.44
NP After MI And SOA Margin (%)21.107.1822.9927.0848.92
Return on Networth / Equity (%)22.329.6628.7723.8024.35
Return on Capital Employeed (%)21.8412.2525.6315.2517.21
Return On Assets (%)10.804.3813.288.4016.69
Long Term Debt / Equity (X)0.050.110.100.090.00
Total Debt / Equity (X)0.150.220.240.430.17
Asset Turnover Ratio (%)0.550.600.590.430.36
Current Ratio (X)1.031.071.390.691.29
Quick Ratio (X)1.031.071.390.691.29
Dividend Payout Ratio (NP) (%)0.000.000.00158.3877.91
Dividend Payout Ratio (CP) (%)0.000.000.0090.3156.11
Earning Retention Ratio (%)0.000.000.00-58.3822.09
Cash Earning Retention Ratio (%)0.000.000.009.6943.89
Interest Coverage Ratio (X)8.616.909.589.0612.01
Interest Coverage Ratio (Post Tax) (X)4.242.744.974.486.73
Enterprise Value (Cr.)82710.7143254.2264333.3873061.7031883.50
EV / Net Operating Revenue (X)2.891.522.325.244.73
EV / EBITDA (X)5.154.314.199.647.92
MarketCap / Net Operating Revenue (X)2.741.362.164.744.39
Retention Ratios (%)0.000.000.00-58.3822.08
Price / BV (X)2.901.832.704.162.19
Price / Net Operating Revenue (X)2.741.362.164.744.39
EarningsYield0.070.050.100.050.11

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹389.15

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 14.46% compared to the current price ₹340

Intrinsic Value: ₹407.32

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 19.80% compared to the current price ₹340

Last 5 Year EPS CAGR: 4.67%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.92%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -23.50, which is a positive sign.
  3. The company has higher reserves (15,955.08 cr) compared to borrowings (7,948.00 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (13.00 cr) and profit (3.50 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 40.33, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Indus Towers Ltd:
    1. Net Profit Margin: 21.10%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 21.84% (Industry Average ROCE: 12.04%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ✓ ROE%: 22.32% (Industry Average ROE: 10.47%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.24
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.03
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✓ Stock P/E: 15.2 (Industry average Stock P/E: 31.86)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✓ Total Debt / Equity: 0.15
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Indus Towers Ltd. is a Public Limited Listed company incorporated on 30/11/2006 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L64201HR2006PLC073821 and registration number is 156038. Currently Company is involved in the business activities of Wireless telecommunications activities. Company’s Total Operating Revenue is Rs. 27708.20 Cr. and Equity Capital is Rs. 2694.90 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Telecom EquipmentBuilding No. 10, Tower-A, Gurugram Haryana 122002ir@industowers.com.
http://www.industowers.com
Management
NamePosition Held
Mr. N KumarChairman & Ind.Director
Mr. Prachur SahManaging Director & CEO
Mr. Harjeet Singh KohliNon Exe.Non Ind.Director
Mr. Gopal VittalNon Exe.Non Ind.Director
Mr. Rajan Bharti MittalNon Exe.Non Ind.Director
Mr. Randeep Singh SekhonNon Exe.Non Ind.Director
Mr. Ravinder TakkarNon Exe.Non Ind.Director
Mr. Thomas ReistenNon Exe.Non Ind.Director
Ms. Anita KapurInd. Non-Executive Director
Mr. Sharad BhansaliInd. Non-Executive Director
Mr. Sonu BhasinInd. Non-Executive Director
Mr. Sunil SoodNon Exe.Non Ind.Director
Mr. Pankaj TewariNon Exe.Non Ind.Director
Mr. Ramesh AbhishekInd. Non-Executive Director

FAQ

What is the latest fair value of Indus Towers Ltd?

The latest fair value of Indus Towers Ltd is ₹389.15.

What is the Market Cap of Indus Towers Ltd?

The Market Cap of Indus Towers Ltd is 91,493 Cr..

What is the current Stock Price of Indus Towers Ltd as on 22 May 2024?

The current stock price of Indus Towers Ltd as on 22 May 2024 is ₹340.

What is the High / Low of Indus Towers Ltd stocks in FY 2024?

In FY 2024, the High / Low of Indus Towers Ltd stocks is ₹367/142.

What is the Stock P/E of Indus Towers Ltd?

The Stock P/E of Indus Towers Ltd is 15.2.

What is the Book Value of Indus Towers Ltd?

The Book Value of Indus Towers Ltd is 100.

What is the Dividend Yield of Indus Towers Ltd?

The Dividend Yield of Indus Towers Ltd is 0.00 %.

What is the ROCE of Indus Towers Ltd?

The ROCE of Indus Towers Ltd is 20.2 %.

What is the ROE of Indus Towers Ltd?

The ROE of Indus Towers Ltd is 25.1 %.

What is the Face Value of Indus Towers Ltd?

The Face Value of Indus Towers Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Indus Towers Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE