Focusing on an understanding of infrastructure GTL Infrastructure Ltd. provides state-of-the- art telecom infrastructure facilities like telecom towers and cell site structures for the mobile service providers across country India. It owns more than fifteen thousand towed across the country, making it the largest independent tower company in the United States. Such overheads are unavoidable for offering Number Portability and other such services which is necessary for offering complete Mobile connectivity hence it becomes an integral part of telecom sector in India.
What is GTL Infrastructure Limited NSE: GTLINFRA?
GTL Infrastructure Limited acquires land and develops Telecommunication installations that telecom operators can then place their facilities on. They have focus on offering telecom towers utilized by various cellular service operators within the Indian sub continent. To these companies, GTL provides services in form of physical infrastructure where they place their equipments with a promise to provide adequate power supply to the towers at pre-agreed prices. Moreover, they are involved in leveraging energy resources as well as the storage systems, while applying the most cutting-edge technology and best practice to guarantee that the modern appliances are optimised.
When 2G spectrum scam was unearthed in India in 2010, the government cancellation of 122 telecom companies’ licenses. This was rather a severe blow for GTL Infrastructure Limited as a number of telecom towers built by this firm remained inactive due to several now-defunct companies. GTL consequently lost many of its clients but it still had to keep maintaining these empty tower without generating any sales revenue from it which was so costly to the company. This led to the continuing problems the company is experiencing and has been part of the reason why it has been in a steady decline after that.
Notably, GTL Infrastructure may return to the black next year buoyed by the 5G services rollout by the various telcos’ across the country. The 5G network also needs extra materiel installed on the existing towers in order to function correctly, and GTL has made sure that it will have the chance to install the needed one. Whether it will enable the company to recapture its spot in the market is the question, although the increasing use of 5G could be a factor that GTL require for it to bounce back.
Year
Minimum Price
Maximum Price
2025
3.50
9.10
Month (2025)
MinimumTarget
Maximum Target
January
Rs 1.38
Rs 5.13
February
Rs 1.42
Rs 6.21
March
Rs 1.56
Rs 6.25
April
Rs 1.64
Rs 7.33
May
Rs 1.70
Rs 7.35
June
Rs 1.94
Rs 8.40
July
Rs 2.21
Rs 8.49
August
Rs 2.48
Rs 8.51
September
Rs 2.67
Rs 8.57
October
Rs 2.64
Rs 8.65
November
Rs 2.72
Rs 8.63
December
Rs 1.78
Rs 9.10
Share price Target 2030
If there isn’t enough competition in the Indian telecom industry for 5G infrastructure, GTL Infra may struggle to make a profit. Although GTL is currently the largest provider of tower infrastructure, its future depends heavily on big players like Jio and Airtel requesting 5G support. To turn a profit, GTL needs to actively engage with telecom companies and secure contracts for 5G infrastructure. Successfully landing these deals could significantly improve the company’s prospects and boost its market position.
Year
Minimum Price
Maximum Price
2030
17
43.30
Month (2030)
MinimumTarget
Maximum Target
January
Rs 17
Rs 32.5
February
Rs 17.5
Rs 33.2
March
Rs 18.3
Rs 35.6
April
Rs 19.8
Rs 36.4
May
Rs 20.4
Rs 38.5
June
Rs 21.4
Rs 37.8
July
Rs 20.8
Rs 36.4
August
Rs 23.4
Rs 37.5
September
Rs 24.6
Rs 39.4
October
Rs 35.7
Rs 41.5
November
Rs 24.9
Rs 42.2
December
Rs 25.2
Rs 43.30
GTL infra Share price Target 2040 / 2050
In future, 6G and 7G in telecom system is expected to be adopted in India and GTL Infra may fulfill its role in the change. Nevertheless, currently GTL Infra is on a low profile, dealing with high levels of debt that deteriorated its positions on the market. This is because the ability of the company to fully exploit these opportunities greatly depends on the revamping of its business model.
In the event that GTL Infra manages to position itself to be among the players in the 6G as well as the 7G networking market, the company’s shares could rise by the year 2040. As more telecom companies increase their networks and improve their tower infrastructure a company like GTL Infra may be positively impacted. However, the company is facing severe financial loss and most of the fundamentals are not in favor or GTL Infra as of now and hence it cannot be considered as a good long term investment today.
Insider Trades
Stock
Date↓
Party
Txn. type
Value traded (₹)
GTLINFRA
05-Aug-2024
Epitome Trading
Sell
21.21Cr
GTLINFRA
05-Aug-2024
Epitome Trading
Buy
28.22Cr
GTLINFRA
01-Aug-2024
Sahastraa Advisors
Buy
24.45Cr
GTLINFRA
01-Aug-2024
Sahastraa Advisors
Sell
18.06Cr
GTLINFRA
29-Jul-2024
Sahastraa Advisors ltd
Sell
16.91Cr
Peers & Comparison
Stock
PE Ratio
PB Ratio
Dividend Yield
GTL Infrastructure Ltd
-4.81
-0.64
—
Indus Towers Ltd
18.72
4.18
—
Suyog Telematics Ltd
28.08
7.59
—
SAR Televenture Ltd
87.98
19.19
—
Key Metrics
FY PE Ratio
PB Ratio
Dividend Yield
-4.81
-0.64
—
Sector PE
Sector PB
Sector Div Yld
-165.68
14.87
0.34%
GTL Infra Ltd earning results
Quarterly – GTL Infrastructure Q3 Results
*All figure in cr. except per share values
Fiscal Period
Dec 23
Sep 23
QoQ Comp
Dec 22
YoY Comp
Total Revenue
337.53
350.77
-3.77%
359.83
-6.20%
Selling/ General/ Admin Expenses Total
46.37
22.12
109.63%
49.94
-7.15%
Depreciation/ Amortization
79.98
82.15
-2.64%
127.18
-37.11%
Other Operating Expenses Total
21.14
20.55
2.87%
236.37
-91.06%
Total Operating Expense
336.62
317.85
5.91%
616.91
-45.43%
Operating Income
0.91
32.92
-97.24%
-257.08
0.00%
Net Income Before Taxes
-194.61
-169.53
14.79%
-463.61
-58.02%
Net Income
-194.61
-169.53
14.79%
-463.61
-58.02%
Diluted Normalized EPS
-0.15
-0.13
15.38%
-0.36
-58.33%
Conclusion
As you have noted, GTL Infra Charged After the 2G scam and the company has never been the same again. S everal chart of the companies’ stocks demonstrate that the firm has not being able to recover. Although these are still unfulfilled and with increasing demand for high speed internet and network services including impending 6G GTL Infra may benefit from future technologies. However, the company is today marred with high debts and remains uncompetitive in the market. At the moment, it would be imprudent to buy into this stock.