India's Vodafone Idea, Indus Towers up after IIFL Securities upgrades

Indus Towers

18/04/2024 06:17

** Telco Vodafone Idea  VODA.NS  jumps 4.5% and telecom
infra developer Indus Towers  INUS.NS  gains 6.4%
    ** IIFL Securities upgrades VODA to 'add' from 'reduce' and
INUS to 'buy' from 'sell'
    ** Says VODA's $5.39 bln fund infusion should help narrow 4G
coverage, capacity gap with peers; expects 15%-20% tariff hikes
twice in next three years
    ** Says tariff hikes, user upgrade to 4G from 2G should
drive VODA's ARPU to 241 rupees in FY27 from 145 rupees in Q3
    ** Says Indus to benefit from VODA's improved financial
position, potential reinstatement of dividend from FY25
    ** Avg analyst rating on VODA is 'sell' and on INUS is
'hold' - LSEG
    ** VODA down ~17% YTD, while INUS has climbed ~75%

 (Reporting by Rama Venkat in Bengaluru)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;))