Global brokerage firm BofA Securities has assigned a ‘Buy’ recommendation on Indus Towers but lowered the target price from ₹490 per share to ₹450 per share.

The price target ascribed by BofA Sec, implies a potential upside of nearly 15% from the stock’s closing levels on Thursday.

The brokerage wrote in its note that the Adjusted Gross Revenue (AGR) decision is seen as having an indirect impact on the company, with no anticipated effect on tenancy growth.

BofA Securities also noted the possibility of multiple de-ratings of valuations, and they see a lower possibility of a lump sum payment or any special dividend in the near term.

The Buy recommendation is based on the stock’s attractive valuation, trading at 6.9 times FY26 EV/EBITDA, compared to 12.6 times for global peers.

Another brokerage Macquarie has issued an ‘Underperform’ rating on Indus Towers, citing concerns that the company’s core earnings may have already reached their peak.

With Vodafone Idea (VI) as one of its key tenants, the outlook for future growth appears uncertain.

The Supreme Court upheld the AGR ruling against the telecom companies and upheld the quantum of the AGR demand.

Vodafone Idea’s AGR dues currently stand at ₹70,300 crore.

The top court in its verdict said that it has gone through the curative petitions and connected documents, adding that no case has been made out by the telecom companies. Therefore, the SC dismissed the petitions. Telecom companies had claimed arithmetic errors in computation of the AGR dues.

On Thursday, shares of Indus Towers Ltd. settled 8.23% lower at ₹393 apiece on the NSE. Despite the decline, the stock is up about 95% so far this year.

The Vodafone Idea stock also fell below their FPO price of ₹11 on Thursday after the near-20% drop.