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@taznq15 Nope, it has roughly 31% market share at the moment. There are 4 large tower players - see the full article in the link for details

@mccree79 Hello! Thanks for the interest. Yup, you could either provide feedback on this article or let me know if there’s another company that’s interesting for a deep dive - i’m interested in companies that i can buy and hold forever, either in India or internationally. If there’s already a...

Summary Indus Towers (NSE:INDUSTOWER) is the largest Indian cell tower company with a history of high ROCE with long term contracts and good visibility of cash flows. Indus had faced headwinds in the last ~2 years, with one of its 4 key Telco customers (Vodafone Idea) coming close to...

@fredom74 They have a net profit margin of around 34% after expenses and interest payments. Dividend payout on net profit is currently 60%+. Meaning they will pay 60%*34% or around 20% of revenue out as dividend. They’ve also reduced their capex intensity over the last few years (as shown...

@shespeakschrist Thanks!!

@dp797 High debt is an issue only if the company could find itself in a position where it can't make interest payments. In Powergrid's case, operating cash flow is 3x interest payments and contracts are 20~30 years long. If, theoretically, revenue gets cut to 1/3rd, they might have problems...

@nic11 You are correct. The primary reason for the company to exist is to provide electricity supply to the country - financial returns would only be a secondary consideration. However, given the growing energy needs of the country, the government needs to encourage massive investments into...

@videomission I just tried to check now, but looks the InvIT website is down - didn't find any further details in their latest annual report. However, one point to note about the 3 projects with initial revenue spikes: their average ROE for the contract is very high (19%~22%), whereas standard...

@videomission Hello - thanks for reading! The drop in ROE in the 3 projects is due to drop in revenue after 2027 in the service agreements. I am not sure why the agreement is structured like that, but I think it has something to do with a CERC ruling to grant additional revenues in the first...

@claire96 Thanks for the feedback. You are right - the government is planning to increasingly privatize state assets through the 'National Monetisation Pipeline. Of the overall plan, INR 452Bn is from transmission assets, which I assume will all come from Powergrid. That represents around 15%...

@nicksc Agreed, this is also why it trades at such low prices currently. However, based on the below points, I think they are actually comparable to private cos: (1) Powergrid's performance is crucial to the country's functioning . Also new projects are critical for the renewable energy...

@jamessecondson Their debt is pretty high, but easily covered by cash flows that are fixed in 30+ year contracts and guaranteed by RBI. Also , they operate critical infrastructure- very low probability that a significant portion of their transmission network stops operating . If that happens...

Powergrid owns and operates 45% of India’s electricity transmission network. It meets all the criteria for a good long term investment: Moat: the dominant player in transmission. Has 20~30 year contracts with assured ROEs. Is the government’s preferred vendor for large scale or complex...