Brokerage firm Citi on Friday, October 11, said it believes the Indus Towers’ share price correction over the last one month is an attractive buying opportunity. Shares of the tower company have declined 11% in the last month.

The brokerage has reiterated its “buy” rating on Indus Towers with a price target of ₹500, which implies a potential upside of nearly 32% from Thursday’s closing levels.

Citi also reiterated its positive catalyst watch on the stock, with three key events to monitor:

Indus Towers’ second quarter results

In the company’s upcoming results, the brokerage said to watch for the quantum of past dues recovered from Vodafone Idea and clarity on the outlook for new tenancies.

Last Month

, it was reported that Vodafone Idea has been able to repay past dues to Indus Tower, with the outstanding amount being reduced to ₹4,600 crore.

Conclusion of Vodafone Idea’s bank funding, which has been delayed

Two weeks ago, Vodafone Idea’s management in an analyst call said the company was in advanced stages of raising ₹35,000 crore from lenders, which is likely to be completed within two months.

Earlier this week, the telecom company clarified it has made detailed representations to the Department of Telecommunications. It stated that it continues to engage with the DoT for the removal of bank guarantee requirements for spectrum acquired before 2022.

The Centre’s waiver of bank guarantee requirement for telcos

On Thursday, October 10, CNBC-TV18 reported, citing sources to CNBC-Awaaz that the DoT was seeking a four- to five-year revival plan from telecom service provider Vodafone Idea Ltd. before approving a bank guarantee exemption.

On a relative basis, the stock is trading at a 20% discount to only other domestic tower companies, Citi wrote in its note.

Shares of Indus Towers are trading 1% higher on Friday, having recovered from the lows of the day at ₹382.85. The stock has risen nearly 90% so far in 2024.