michaela57
New member
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 bankruptcy, which has led to differed payments, write-offs and a large provision in Indus’ balance sheet.
However, looking at the fundaments and competitive landscape, the stock seems to be trading below intrinsic value in the base case, while only slightly overvalued using pessimistic assumption:
https://preview.redd.it/jhktffd71cc...bp&s=2fba750621fa353a706adfa33b54511e6a46e470
Detailed analysis can be found in the link below, covering:
- The Indian mobile and cell tower industry
- Indus’ business model
- The Vodafone Idea crisis
- Indus’ management
- Competitive advantages / moat
- Runway / future growth potential
- Risks
- Valuation
- Sources
This is the first company deep-dive I've published, so looking for feedback and anything I might have missed!