Check Before You Invest : Indus Towers Ltd

Snapshot

Q.1 Which industry/sub-sector does Indus Towers Ltd belong to?

Indus Towers Ltd belongs to the Telecom sector, operating specifically within the Telecommunication - Service Provider segment.

Q.2 Is Indus Towers Ltd a good quality company?

Indus Towers Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Indus Towers Ltd undervalued or overvalued?

Indus Towers Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Indus Towers Ltd a good buy now?

Indus Towers Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Indus Towers Ltd?

Indus Towers Ltd revenue growth is 5.3% for FY-2025, which is below its 5-year CAGR of 34.92%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Indus Towers Ltd?

Indus Towers Ltd Return on capital employed is 45.34% for FY-2025, which is above its 5-year historical median of 34.91%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Indus Towers Ltd?

Indus Towers Ltd Return on Asset is 16.81%, which is above its 5-year historical median of 12.06%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Indus Towers Ltd?

Indus Towers Ltd Return on equity is 33.31% for FY-2025, which is above its 5-year historical median of 25.08%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Indus Towers Ltd?

Indus Towers Ltd Cash conversion cycle is 25 days, in line with its 5-year historical median of 25 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.51	0.57
ROE	33.31	25.08
ROCE	45.34	34.91
Cash Conversion Cycle	25 days	25 days

Q.6 Gross Profit margin of Indus Towers Ltd?

Indus Towers Ltd Gross profit margin which is the profit after deduction of direct costs, is 64.9% for FY-2025, which is above its 5-year median of 49.6%, indicating increasing margins.

Q.7 Operating Profit Margin of Indus Towers Ltd?

Indus Towers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 51.51% for FY-2025, which is in line with its 5-year median of 51.13% indicating stable margins.

Q.8 Net Profit Margin of Indus Towers Ltd?

Indus Towers Ltd Net Profit Margin is 32.94% for FY-2025, is above with its 5-year median of 22.98%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	64.9	49.6
Operating Profit Margin	51.51	51.13
Net Profit Margin	32.94	22.98

Q.9 Debt to Equity ratio of Indus Towers Ltd?

Indus Towers Ltd Debt-to-Equity ratio is 0.07, which is lower with the industry average of 0.22, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Indus Towers Ltd?

Indus Towers Ltd Debt to cash flow from operations is 0.12, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Indus Towers Ltd?

Promoters hold 51.26% of the Indus Towers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Indus Towers Ltd vs industry peers?

Indus Towers Ltd revenue CAGR is 34.92%, compared to the industry median CAGR of 15.36%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	5.3	15.4
Gross Profit Growth	37.8	27.4
Operating Profit Growth	7.2	22.1
Net Profit Growth	64.2	41.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.51	0.35
ROE	33.31	19.17
ROCE	45.34	14.99
Cash Conversion Cycle (days)	25.34	-82

Valuation & price assessment

Q.1 Stock return of Indus Towers Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	1%	9.6%	39.4%	8.3%

Q.3 Valuation ratios of Indus Towers Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	14.89	14.02	19.31
Price to Book	2.68	2.90	0.68
Price to Sales	3.27	2.97	2.17
EV to EBITDA	5.67	4.87	12.27

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