shares declined 3.75 per cent to ₹317.10 in morning trade on Wednesday, despite the board’s approval to expand into African markets. The stock touched an intraday low of ₹312.55, marking a new 52-week low for the tower company.
The company announced on Monday that its board approved entry into Nigeria, Uganda, and Zambia, leveraging its relationship with anchor customer Bharti Airtel. However, analysts expressed mixed reactions to the expansion plan.
CLSA maintained its Outperform rating but cut the target price to ₹520 from ₹595, citing concerns over the limited scale of the opportunity. The brokerage noted that Airtel Africa operates 37,579 towers across these markets, with only 2,157 owned towers and the three target countries accounting for under 500 towers. This suggests the revenue diversification impact may be minimal despite the strategic partnership.
Citi retained its Buy rating with a ₹460 target price, arguing that investor concerns around delayed payouts and Vodafone Idea’s sustainability appear overdone. The firm highlighted the potential for medium-term growth and robust free cash flow generation.
Both brokerages flagged the delay in dividend reinstatement as a key concern. CLSA had expected management to focus on improving capital structure through higher dividends rather than international expansion.
The stock has traded 342.07 lakh shares worth ₹1,082.18 crore, with 54.98 per cent representing deliverable quantity, indicating institutional interest despite the decline.