Nomura has initiated coverage on Anant Raj Ltd with a ‘buy’ rating and a target price of ₹750. The brokerage firm highlighted that the company is well-positioned to execute its medium-term data centre and cloud expansion targets. Anant Raj also enjoys a favorable financial standing with its net debt and equity levels, as noted by the brokerage.
Nomura emphasized the growing demand in Anant Raj’s global cluster, particularly in early recovery data, which is expected to enhance the residential segment’s cash flow generation capabilities. The company is on track to launch two to three projects in the upcoming year and an additional three projects by FY26, adding momentum to its growth trajectory.
Risk-Reward Analysis
The brokerage observed that the share’s risk-reward balance leans heavily towards ‘reward’ after the stock’s recent correction of around 30% in the past month, significantly underperforming the Nifty 50 index, which only saw a 1% decline. Nomura attributed the correction to a broader sell-off in technology stocks, driven by concerns over emerging low-cost AI models.
Robust Residential Segment and Data Centre Expansion
A significant portion of Anant Raj’s cash flow is expected to come from the residential projects, especially the upcoming project in Sector 63A, Gurugram, which will be developed on a legacy land parcel already acquired by the company. The brokerage also pointed out that half of the capital expenditure for these projects can be funded through internal accruals.
Nomura downplayed concerns over pricing risks in the data centre segment, arguing that India remains an under-penetrated market in this space. Policies like the Digital Personal Data Protection Act, 2023, are expected to bolster the demand for locally based data centres and cloud services, thus supporting Anant Raj’s long-term growth outlook.
Stock Performance
Anant Raj shares gained 1.70% today, trading at ₹629.00, up by ₹10.50 from its previous close of ₹618.50. The stock recorded a day’s range of ₹610.45 to ₹635.00 with a market capitalization of ₹214.84 billion. The company’s P/E ratio stands at 55.00, and its dividend yield is 0.12%, reflecting its promising growth trajectory.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
