Shares of Anant Raj Limited surged nearly 4% today, trading at ₹699.90, following Emkay Global Financial Services‘ initiation of coverage with a ‘Buy’ rating. The firm has set a SoTP-based target price of ₹925, indicating a potential upside of 37%. With a market capitalization of ₹230 billion, Anant Raj continues to position itself as a key player in the real estate and data center industries.
Key Highlights:
- Established Presence in NCR Real Estate Market: Anant Raj has built a strong reputation as a leading real estate developer in the NCR region. The company is expected to achieve a CAGR of 18% in bookings and 39% in collections during FY24-27E, supported by a healthy pipeline of launches.
- Expansion into High-Growth Data Center Space: The company is making a significant foray into the fast-growing data center and cloud services market. With plans to increase capacity to 102MW by FY27E (from the current 6MW as of Q2FY25), the data center segment is poised to drive future growth.
- Enhanced Financial Position: A deleveraged balance sheet and plans to raise ₹20 billion in funds are expected to support the growth of its data center business. The segment’s EBITDA and PAT are projected to increase sharply to ₹6.5 billion and ₹3 billion by FY27E, respectively.
- Long-Term Returns from Data Center Investments: The company expects its data center segment to deliver an impressive IRR of ~21% through FY45E, creating sustained value for investors.
