Infra stock jumps 6% after it receives buy call for an upside of more than 30%
Infra stock jumps 6% after it receives buy call for an upside of more than 30%
An infrastructure stock surged 6 percent after Emkay Global initiated a “Buy” rating, citing an upside potential of over 32 percent. The positive outlook has sparked investor interest, as the stock is expected to benefit from favorable market conditions and growth prospects in the sector.
Price Movement
During Monday’s trading session, Anant Raj Ltd’s shares reached an intraday high of Rs.714.65 per share, rising 6 percent from its previous close of Rs.673.45 apiece. The shares have retreated since then and currently trading at Rs.703.00 per share.
What happened
Emkay Global has initiated coverage on Anant Raj Ltd. with a “Buy” rating and a target price of Rs.925, indicating a 37 percent upside. The company holds a 220-acre land bank in NCR and has significant development potential, with 12 million square feet in Delhi.
Anant Raj’s residential business is expected to grow at an 18 percent CAGR in bookings and 39 percent in collections from FY24 to FY27. Its Rs.7,000 crore launch pipeline and additional GDV potential of Rs.10,000 crore position it strongly in the NCR real estate market.
The company’s data center business, which started in FY23, is rapidly expanding, with plans to scale from 6MW to 307MW in 4-5 years. Expected to generate Rs.850 crore in revenue by FY27, the data center business is set to maintain strong margins, with EBITDA projected at 75-80 percent.
With a deleveraged balance sheet and plans to raise Rs.2,000 crore, Anant Raj is well-positioned for growth, with consolidated earnings expected to post a 35 percent CAGR by FY27.
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Recent Developments
Anant Raj has made significant strides with its data center expansion, operationalizing 6 MW of IT load at Manesar and progressing towards a total capacity of 28 MW by FY25. The company also launched its cloud services platform, focusing on IaaS and AI solutions in partnership with Orange Business.
Additionally, Anant Raj acquired 100 percent equity in Sheetij Properties Pvt. Ltd., securing 11.35 acres in Sector 63A, Gurugram, enhancing its development prospects in the region.
Financial Performance
In its latest financial update, Anant Raj Ltd posted net sales of Rs.513 crores for Q2 FY25, marking a 55 percent growth compared to Rs.332 crores in Q2 FY24. The company’s net profit for Q2 FY25 climbed to Rs.106 crores, reflecting a 77 percent increase from Rs.60 crores in the same quarter last year.
Company Overview
Anant Raj Limited is a prominent Indian real estate developer. Initially established as Anant Raj Clay Products, the company has diversified into residential, commercial, and IT infrastructure projects. Known for its focus on luxury, innovation, and sustainability, Anant Raj has developed over 20 million square feet of real estate, establishing a strong presence in the Indian market.
Written by – Siddesh S Raskar
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