Emkay Global Financial Services has initiated coverage on Anant Raj with a ‘Buy’ rating and a SoTP-based target price of ₹925, indicating a potential upside of 37%. With a market capitalization of ₹230 billion, the company stands out as a key player in both the real estate and emerging data center industries.
Key Highlights:
- Established Presence in NCR Real Estate Market:
Anant Raj is recognized as a reputed developer in the NCR region, leveraging its strong brand to maintain consistent growth. The company’s real estate business is poised to achieve a robust bookings and collections CAGR of 18% and 39%, respectively, during FY24-27E, supported by a healthy launch pipeline. - Foray into High-Growth Data Center (DC) Space:
The company is making significant strides in the data center and cloud services domain. With a projected capacity addition of 102MW by FY27E (compared to 6MW as of Q2FY25), this segment is expected to drive Anant Raj’s future growth. - Improved Financial Position:
A deleveraged balance sheet, along with a proposed ₹20 billion fund-raise, is expected to propel the growth of the data center business. By FY27E, the company’s DC business EBITDA and PAT are projected to increase sharply to ₹6.5 billion and ₹3 billion, respectively. - Attractive Long-Term Returns from DC Segment:
The data center business is expected to deliver a compelling IRR of ~21% up to FY45E, offering long-term value creation for investors.
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