Airtel owns almost 50% of indus tower and vodafone idea owns about 20% which i believe most of it is pledged to indus tower and other creditors.This to me is lifetime opportunity because indus tower has to survive for airtel to survive as not only it is his the biggest cash cows in the form of dividends plus it will also lose it’s competitive edge over rival jio if something happens to Indus tower.Historlly speaking at current valuation if voda idea survives or someone picks it up for throwaway price like ruchi soya,Then you will own a asset which not only gives you a dividend yield of 10% plus but also also own something which is the backbone of digital india.After jio the consumption and users of internet has only increased and it’s only going to increase with rising young people in India and our country moving to digital payments and online shopping away from the old brick and mortal model.
Vodafone-idea or not ,Airtel will not let get Indus tower go off ,As it will be at the mercy of canada brokfeild which owns and provide services to jio towers.Worst case scenario Airtel will sell indus towers to some company like Canada brookfeild at similar valution they purchased 130000 jio towers for 25000 cr,whereas indus has 185000 towers. Which gives it a valution of 36000cr minus debt plus investment gives it a valution of almost around around 30000 cr(current market cap 36000 cr).
Disc:I have started averaging down another reason being airtel was the first one to pick up a huge 4% stake in the tower company from vodafone idea and that to at 186 rs a share.this right now trades at almost 26% discount to that and i don’t know what the bottom might be but i do know when all thing scool down this will not trade at 136 rs a share.(This is my persnal opinion as i own the stock so please do your own research)
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