Emkay Global’s ‘Buy’ Rating on Anant Raj Ltd.

Emkay Global, a reputable brokerage firm, has started coverage on Anant Raj Ltd. with a ‘buy’ rating. They’ve set a target price of Rs 925 for Anant Raj, indicating an impressive upside of 37%.

Anant Raj’s Strong Residential Business

Anant Raj boasts a substantial 220-acre land bank in the National Capital Region (NCR), along with an untapped development potential of 12 million square feet in Delhi. This puts the company’s residential business on firm ground, underlining Emkay Global’s positive rating.

Projected Growth for Anant Raj

Emkay Global forecasts a robust 18% compound annual growth rate (CAGR) in bookings for Anant Raj and a staggering 39% CAGR in collections from the fiscal years 2024 to 2027. A striking Rs 7,000 crore launch pipeline and an additional Gross Development Value (GDV) potential of Rs 10,000 crore sets Anant Raj apart in the NCR real estate market.

Anant Raj’s Data Center Business

The company’s data center business, which started in the fiscal year 2023, is on a rapid growth trajectory. It plans to increase capacity from 6MW to a sizeable 307MW within the next 4 to 5 years. Anant Raj has the advantage of affordable land and civil structures, positioning the company perfectly to seize the growing demand for digital infrastructure spurred by 5G, fiber expansion, and data protection policies, Emkay Global reports.

Future Revenue and Profitability

By the fiscal year 2027, the data center business alone is expected to chalk up an impressive Rs 850 crore in revenue. Emkay Global anticipates strong margins, with Ebitda margins maintaining at 75-80%. The data center business is forecasted to yield a healthy internal rate of return of 21%, reflecting its vast growth potential.

Anant Raj’s Growth Engines

Armed with a deleveraged balance sheet and plans for a Rs 2,000 crore fundraise, Anant Raj is well-prepared to fund its dual growth engines. By fiscal 2027, Emkay predicts a 35% CAGR in consolidated earnings, driven by robust cash flows from its real estate collections and data center profitability.