Realty company Anant Raj shares have experienced a notable decline over the past few months, dropping significantly from the 52-week high.
The stock has fallen from highs of ₹744 to ₹541. Recently, it has gained attention following the announcements in the Union Budget 2026, which provided a favourable push to data center stocks.
This editorial delves into some key indicators that may offer insights into the potential trajectory of the stock price in the coming years.
This is not a stock recommendation.
About Anant Raj
Anant Raj is a prominent Indian real estate development company based in New Delhi that has been active since 1969.
It is known for residential townships, commercial properties, IT parks, hospitality projects, malls, and increasingly data centers.
The positives working in favour of Anant Raj
- Good financials
The company has reported three-year compounded sales growth of 64.6%, while the net profit growth during the period has been 105.7%.
- Strong emerging presence in data centres
Anant Raj is advancing with its data center plans. It recently operationalised its second data center facility in Panchkula, featuring a capacity of 7 MW IT load.
Additionally, the Manesar facility has been upgraded to a 21 MW IT load capacity. Furthermore, the company plans to invest ₹45 billion (bn) in Andhra Pradesh to develop a data center, IT park, and cloud services, with a total planned capacity of 50 MW IT load.
- Strong growth likely in real estate
The company is also rapidly expanding its core real estate business. The Estate One (Group Housing 2 project) in Gurugram of over 5.09 acres is on track for launch in Q4 FY26.
The company has also commenced phase IV of the Anant Raj Estate having an additional project area of 6.075 acres.
Another Group Housing over 6.39 acres is progressing as per schedule and is expected to receive permissions in Q4 of FY26.
- Tax holiday advantage
The 2026 Union Budget introduced a tax holiday (until 2047) for global cloud services from Indian data centres. Anant Raj, which has a planned capacity of 307 MW by 2032.
- Low cost land bank
The company possesses approximately 83 acres of low-cost land, which is expected to drive growth in the real estate segment.
Factors to look at before considering the stock
- Valuations
Valuations are fundamentally relative, allowing for varied interpretations.
While certain investors may be prepared to pay higher multiples for growth potential, it's important to note that Anant Raj's stock is currently trading at a price to earnings (PE) ratio of approximately 36 and a price to book (PB) value of 3.4.
- Execution & cash flow pressure
While data centre expansion is promising, it’s capital-intensive and could temporarily stretch cash flows and delay profits from new assets.
Execution delays or cost overruns in real estate or infrastructure projects also pose risks.
Financial Numbers of Anant Raj
Let’s now take a look at the financial numbers of Anant Raj.
On the financial front, the company has been doing well. For Q3FY26, revenues stood at ₹641.6 crore, up 20% YoY. Ebitda margins for the quarter stood at 28.55% up 229 bps YoY from 26.27%.
The net profit of the company grew 30.68% YoY to ₹1,44.23 crore.
Revenue from data center, infrastructure and allied services stood at ₹102 crore, which is still small in the overall context.
What to expect from Anant Raj in next three years?
Anant Raj has successfully reduced its debt substantially over the last few years, bringing it down from ₹1,494 crore in FY21 to ₹500 crore in FY25.
The company possesses approximately 83 acres of low-cost land, which is expected to drive growth of the real estate business.
Additionally, the data centre operations are projected to contribute significantly to the company’s revenue in the coming years.
However, effective execution will remain a critical factor for the company moving forward. Investors should also closely monitor valuations of the stock.
Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com