GTL Infra Share Price Target 2022, 2023, 2024, 2025, and 2030

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GTL Infra share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about GTL Infra share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.

For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear for you, in this article we have mentioned GTL Infra share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.

Also read: JP Power share price target 2022, 2025, and 2030.

GTL Infra Share Price Target 2022, 2023, 2024, 2025, and 2030

GTL Infrastructure Ltd. (GTL Infra), is a pioneer in the Shared Passive Telecom Infrastructure in India. GTL Infra deploys, owns, and manages telecom towers and communication structures that are shared by the Wireless Telecom Operators. With a portfolio of about 28,000 towers located across all the 22 Telecom Circles in India, GTL Infra has emerged as India’s largest independent and neutral Telecom Tower company.

GTL Infra’s business model of infrastructure sharing enables the Telecom Operators to convert their capital expenditure to a fixed and predictable operational expenditure, allowing them to divert precious capital towards core activities. GTL Infra revenues arise under long-term (5-10-15 years) contracts with the Wireless Telecom Operators. Contracts are renewable upon expiry of the term, at the option of the Telecom Operators.

GTL Infra is contributing to making the vision of connected India a grand reality, by keeping everyone connected through its state-of-the-art network of mobile towers, thereby enabling the vision of Digital India.

GTL Infra is also associated with the prestigious projects being promoted by DoT (Department of Telecommunications) and COAI such as USO (Universal Services Obligation Fund) for rural telecom infrastructure and MOST (Mobile Operator Shared Tower).

Share Holding Pattern

GTL Infra share price target 2022, 2023, 2024, 2025, and 2030

GTL Infra Share Price Target 2022

Various developments in the Indian Telcom Sector during the last few years, which were beyond the control of the Company and the management, continued to hamper the business prospects of the Company. The Company not only lost more than 60,000 tenants over the last ten years but is also unable to recover its dues from various telecom operators who either closed down their operations or filed for bankruptcy.

During the current financial year as well, continued consolidation of few telecom operators and cash flow constraints on telecom operators due to cost pressure, lower tariffs, and AGR payouts led to tenancy exits and lower than expected revenue growth. Also, inaction from lenders to reduce debt to a sustainable level impacted the performance of the Company. By considering all the above negative factors, we assume that it may continue further for a few more years, and we are negative on GTL Infra due to the disruptions in the telecom sector. GTL Infra share price target for 2022 is Rs 2.5.

GTL Infra share price target 2022
Rs 2.5

Also read: Tata Chemicals share price target 2022, 2025, and 2030.

Strengths of GTL Infrastructure

Strengths are the firm’s capabilities and resources that it can use to design, develop, and sustain competitive advantage in the marketplace

  • Brands catering to different customers segments within Construction Services segment – GTL Infrastructure extensive product offerings have helped the company to penetrate different customer segments in Construction Services segment. It has also helped the organization to diversify revenue streams.
  • Market Leadership Position – GTL Infrastructure has a strong market leadership position in the Construction Services industry. It has helped the company to rapidly scale new products successes.
  • Talent management at GTL Infrastructure and skill development of the employees – Human resources are integral to the success of GTL Infrastructure in Construction Services industry.
  • Success of new product mix – GTL Infrastructure provides exhaustive product mix options to its customers. It helps the company in catering to various customers segments in the Construction Services industry.
  • Diverse Revenue models – Over the years GTL Infrastructure has ventured into various businesses outside the Capital Goods sector. This has enabled the company do develop a diversified revenue stream beyond Capital Goods sector and Construction Services segment.
  • First mover advantage in the increasingly crowded market place. The new products are rapidly increasing GTL Infrastructure market share in the Construction Services industry.

Weaknesses of GTL Infra

Weaknesses of GTL Infrastructure can either be absence of strengths or resources of capabilities that are required but at present the organization doesn’t have. Leaders have to be certain if the weakness is present because of lack of strategic planning or as a result of strategic choice.

  • Low investments into GTL Infrastructure’s customer oriented services – This can lead to competitors gaining advantage in near future. GTL Infrastructure needs to increase investment into research and development especially in customer services oriented applications.
  • Niche markets and local monopolies that companies such as GTL Infrastructure able to exploit are fast disappearing. The customer network that GTL Infrastructure has promoted is proving less and less effective.
  • Loyalty among suppliers is low – Given the history of GTL Infrastructure coming up with new innovations to drive down prices in the supply chain.
  • High turnover of employees at the lower levels is also a concern for the GTL Infrastructure . It can lead to higher salaries to maintain the talent within the firm.
  • Extra cost of building new supply chain and logistics network – Internet and Artificial Intelligence has significantly altered the business model in the Capital Goods industry and given the decreasing significance of the dealer network GTL Infrastructure has to build a new robust supply chain network. That can be extremely expensive.
  • Gross Margins and Operating Margins which could be improved and going forward may put pressure on the GTL Infrastructure financial statement.

Opportunities for GTL Infrastructure

Opportunities are potential areas where the firm chan identify potential for – growth, profits, and market share.

  • Lowering of the cost of new product launches through third party retail partners and dedicated social network. GTL Infrastructure can use the emerging trend to start small before scaling up after initial success of a new product.
  • Rapid Expansion of Economy As the US economy is improving faster than any other developed economy, it will provide GTL Infrastructure an opportunity to expand into the US market. GTL Infrastructure already have know-how to operate into the competitive US market.
  • Local Collaboration – Tie-up with local players can also provide opportunities of growth for the GTL Infrastructure in international markets. The local players have local expertise while GTL Infrastructure can bring global processes and execution expertise on table.
  • Opportunities in Online Space – Increasing adoption of online services by customers will also enable GTL Infrastructure to provide new offerings to the customers in Construction Services industry.
  • Increasing customer base in lower segments – As customers have to migrate from un-organized operators in the Capital Goods industry to licensed players. It will provide GTL Infrastructure an opportunity to penetrate entry level market with a no-frill offering.
  • Trend of customers migrating to higher end products – It represents great opportunity for GTL Infrastructure, as the firm has strong brand recognition in the premium segment, customers have experience with excellent customer services provided by GTL Infrastructure brands in the lower segment. It can be a win-win for the company and provides an opportunity to increase profitability.

Threats to GTL Infrastructure

Threats are factors that can be potential dangers to the firm’s business models because of changes in macro economic factors and changing consumer perceptions. Threats can be managed but not controlled.

  • Saturation in urban market and stagnation in the rural markets – For GTL Infrastructure this trend is an ongoing challenge in the Construction Services segment. One of the reasons is that the adoption of products is slow in rural market. Secondly it is more costly for GTL Infrastructure to serve the rural customers than urban customers given the vast distances and lack of infrastructure.
  • Competitive pressures – As the new product launch cycles are reducing in the Capital Goods industry. It has put additional competitive pressures on players such as GTL Infrastructure. Given the large customer base, GTL Infrastructure can’t respond quickly to the needs of the niche markets that disruptors are focusing on.
  • The growing technological expertise of local players in the export market – One of the biggest threat of tie-up with the local players in the export market for GTL Infrastructure is threat of losing IPR. The intellectual property rights framework is not very strong in emerging markets especially in China.
  • Changing political environment with US and China trade war, Brexit impacting European Union, and overall instability in the middle east can impact GTL Infrastructure business both in local market and in the international market.
  • Commoditization of the product segment – The biggest challenge for GTL Infrastructure and other players in the industry is the increasing commoditization of the products in Capital Goods industry.
  • Distrust of institutions and increasing threat of legal actions for GTL Infrastructure – As the WTO regulations and laws are difficult to enforce in various markets. Legal procedures have become expensive and long drawn process. It can lead to less investment into emerging markets by GTL Infrastructure thus resulting in slower growth.

GTL Infra share price target 2023

The total number of internet subscribers increased from 749.07 Mn in June 2020 to 776.45 Mn in September 2020, of which the number of wired internet subscribers stood at 24.36 Mn and wireless internet subscribers at 752.09 Mn.

The number of internet subscribers in India is expected to double by 2021 to 829 Mn with overall IP traffic expected to grow four-fold at a CAGR of 30% by 2021. As per TRAI, average wireless data usage per wireless data subscriber stood at 11 GB per month in FY20, expected to reach 18 GB by FY24.

Wireless subscriptions too grew robustly over the past few years. Growth in wireless subscriptions led to a significant rise in wireless teledensity. In FY20, wireless subscription stood at 1,157.75 Mn whereas wireless teledensity reached 85.57%. As of January 2021, the wireless subscriber base of Jio stood at 410.73 Mn, Bharti Airtel at 344.60 Mn, and Vodafone Idea at 285.97 Mn. GTL Infra share price target for 2023 is Rs 3.5.

GTL Infra share price target 2023
Rs 3.5

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GTL Infra Share Price Target 2024

India is currently the second-largest telecommunication market with the second-highest number of internet users in the world. India’s telephone subscriber base increased from 1,173.83 Mn in December 2020 to 1,183.49 Mn in January 2021.

Teledensity (defined as the number of telephone connections for every 100 individuals) in India stood at 87.01% as of January 2021. The total wireless or mobile telephone subscriber base increased to 1,163.41 Mn in January 2021 from 1,153.77 Mn in December 2020.

The share of the wireless segment in India’s telecommunications market increased steadily. The wireless segment accounted for 98.30% of the total telephone subscriptions in January 2021. Rural subscribers’ teledensity increased from 29.92% in December 2020 to 29.94% in January 2021. By considering all these factors, GTL Infra share price target for 2024 is Rs 5.25.

GTL Infra share price target 2024
Rs 5.25

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GTL Infra Share Price Target 2025

India holds the distinction of being the largest consumer of mobile data globally. Data consumption in India also witnessed exponential growth over the past few years. Total wireless data usage in India grew 1.82% quarterly to reach 25,227 PB (petabytes) in the 3rd quarter FY21.

The contribution of 3G and 4G data usage to the total volume of wireless data usage stood at 2.81% and 96.48%. In the 3rd quarter FY21 with a share of 2G data usage at 0.71% only for the same quarter.

Wireless broadband subscribers stood at 668.26 Mn in FY20. As of January 2021, the top service providers including Reliance Jio Infocomm Ltd., Bharti Airtel, Vodafone Idea, BSNL, etc contributed 98.84% to the total broadband subscribers. GTL Infra share price target for 2025 is Rs 8.5.

GTL Infra share price target 2025
Rs 7.5

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GTL Infra Share Price Target 2030

Broadly the tower companies can be categorized into (i) operator-owned tower companies; (ii) towers owned by Government operators and (iii) independent tower companies.

Telecom towers form the backbone of wireless networks and provide last-mile connectivity to subscribers. Tower requirements usually depend on Network Coverage (which, in turn, depends upon geographical area, population density, and spectrum bands) and Network Capacity i.e. maturity of the wireless industry, cellular and data penetration and data usage per subscriber, the quantum of the spectrum and wireless data technology (whether it is 2G/3G/4G/5G) or IoT.

As the number of tenants on a tower increases, tower companies are able to generate incremental revenue and EBITDA. The key driver of tower revenue growth is tenancy. Apart from tenancies, tower company revenues are also influenced by the pricing charged per tenant.

Operating cost components for the tower business are site rentals, repairs, and maintenance, security charges, insurance, and cost of outsourced resources. As major expense items are fixed in nature, the cost for the additional tenants is minimal. Hence, the tenancy ramp-up results in a significant percentage of incremental revenues, ROI, and cash flow.

To gain market penetration and 4G Network expansion at optimal cost, Telcos continued to rent towers from TowerCos, thereby considerably reducing costs while allowing them to focus on their core. Renting towers from TowerCos enabled these Telcos to go to market within a short time. GTL Infra share price target for 2030 is Rs 26.

GTL Infra share price target 2030
Rs 26

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GTL Infra Share Price Target 2022, 2023, 2024, 2025, and 2030

YearGTL Infra Share Price Target
GTL Infra share price target 2022Rs 2.5
GTL Infra share price target 2023Rs 3.5
GTL Infra share price target 2024Rs 5.25
GTL Infra share price target 2025Rs 7.5
GTL Infra share price target 2030Rs 26

Frequently Asked Questions

Can we hold GTL Infra share?

There are a lot of other shares to buy and hold for the long term. GTL Infra has shown poor revenue growth of -15.46% over the past 3 years, poor ROE of -105% over the past 3 years, and poor ROCE of -16.80% over the past 3 years. So finally sell GTL Infra and invest your hard-earned money in some fundamentally good shares.

What is the future of GTL Infra?

Various developments in the Indian Telcom Sector during the last few years, which were beyond the control of the Company and the management, continued to hamper the business prospects of the Company. The Company not only lost more than 60,000 tenants over the last ten years but is also unable to recover its dues from various telecom operators who either closed down their operations or filed for bankruptcy. If the disruptions in the telecom sector continue then it is bad news for GTL Infra.

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