Anant Raj Ltd
Anant Raj Ltd
Consumer DiscretionaryAnant Raj Ltd was incorporated in 1985 as Anant Raj Clay Products by Ashok Sarin. It is primarily engaged in the development and construction of IT parks, hospitality projects, SEZs, office complexes, shopping malls and residential projects in the State of Delhi, Haryana, Andhra Pradesh, Rajasthan and NCR. The Company has successfully developed more than 20 msf of real estate projects in the Housing, Commercial, IT Parks, Shopping Malls, Hospitality, Residential and Affordable Housing sub-segments. [1] [2]
Anant Raj Ltd offers compelling growth with 120% profit CAGR over 5 years and 38% sales CAGR over 3 years, supported by unanimous analyst buy ratings. However, the premium valuation at 34.1x PE and 3.29x PB with modest ROE of 10-11% warrants caution, making this a high-conviction growth bet rather than a value pick.
Key Fundamentals
SmallcapResidential Commercial ProjectsRealtyTechnical Indicators
Key Insights
Strengths
1- Company has delivered good profit growth of 120% CAGR over last 5 years
Weaknesses
3- Stock is trading at 3.29 times its book value
- Company has a low return on equity of 10.2% over last 3 years.
- Promoter holding has decreased over last 3 years: -5.81%
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoAnant Raj Ltd offers compelling growth with 120% profit CAGR over 5 years and 38% sales CAGR over 3 years, supported by unanimous analyst buy ratings. However, the premium valuation at 34.1x PE and 3.29x PB with modest ROE of 10-11% warrants caution, making this a high-conviction growth bet rather than a value pick.
- Exceptional 5-year compounded profit growth of 120% CAGR demonstrates strong earnings momentum
- All 3 analysts covering the stock have a Buy rating, representing 100% buy consensus
- 3-year stock CAGR of 46% and 5-year CAGR of 55% show sustained wealth creation for investors
- TTM sales growth of 22% and 3-year compounded sales growth of 38% indicate robust revenue expansion
- TTM profit growth of 30% continues to outpace revenue growth, suggesting improving margins
- ROE improving from 5% (10-year average) to 8% (5-year) to 10% (3-year) to 11% (last year) shows consistent upward trajectory
- Market cap of Rs 18,813 crore provides adequate liquidity while still offering mid-cap growth potential
- 10-year stock CAGR of 35% demonstrates long-term compounding ability through multiple market cycles
- PE ratio of 34.1x is elevated for a real estate company, pricing in significant future growth
- Price-to-book of 3.29x is high for an asset-heavy business, limiting margin of safety
- 3-year average ROE of only 10.2% is modest given the premium valuation multiples being paid
- Promoter holding has decreased by 5.81% over the last 3 years, signaling potential insider concern
- Dividend yield of just 0.14% offers negligible income return to shareholders
- 1-year stock CAGR has slowed sharply to just 2%, suggesting momentum fatigue after the multi-year rally
- 10-year compounded sales growth of only 19% versus 5-year of 59% indicates growth is cyclical and may not sustain
- Absence of reported debt-to-equity and EPS data limits full visibility into financial leverage and per-share economics
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- Massive capex execution risk Jun 2
₹20,000-25,000 crore planned investment over 6-8 years would substantially increase leverage from current 0.11 debt-to-equity, requiring phased funding and flawless execution across 307+ MW capacity buildout.
- Intense competitive pressure Jun 2
Established players like Nxtra (Airtel), STT GDC, AdaniConneX, and CtrlS dominate the market, while Google's $15 billion AI hub and Tillman's ₹15,000 crore campus in Andhra Pradesh intensify local competition.
- Complex infrastructure scaling challenges Jun 2
Scaling from 28 MW to 307 MW requires ₹2,300-3,300 crore for power, ₹3,700-4,900 crore for cooling, and ~8 billion litres of water annually, necessitating advanced liquid cooling technology investment.
- Premium valuation demands delivery Jun 2
Market cap near ₹193 billion at ~34x P/E reflects high investor optimism; efficacy depends heavily on achieving high utilization rates against global hyperscalers and specialized domestic operators.
- Cloud capex intensity very high Jun 2
Cloud services require ₹126 crore per MW versus ₹26 crore for colocation, and 25% of planned 357 MW is dedicated to cloud, significantly raising overall capital requirements.
- ₹25,000 cr Haryana MoU signed Jun 1
Anant Raj signed MoU with Haryana Enterprises Promotion Centre for ₹25,000 crore data centre investment under 'Make in Haryana Policy'; shares surged 4.6% to ₹563.65 on the news.
- 75% EBITDA margins in DC business Jun 2
Data centre operations deliver 75% EBITDA margins versus 26-30% for traditional real estate, with colocation generating 31% first-year ROIC and cloud services delivering 415% first-year ROIC.
- 54% lower development costs Jun 2
Existing campuses in Manesar and Panchkula reduce data centre development costs to ~₹26 crore/MW versus industry norms of ₹55-60 crore/MW by eliminating land acquisition and foundation construction.
- Strong Q4 FY26 profit growth Jun 2
Net profit rose 25% YoY to ₹148.71 crore in Q4 FY26; FY26 full-year profit grew to ₹557 crore from ₹426 crore with revenue up 22% to ₹2,579 crore and EBITDA margins expanding 271 bps to 28%.
- Near-zero debt balance sheet May 26
Net debt fell to ₹50 crore from ₹1,626 crore in FY21, with debt-to-equity at 0.11 and interest coverage of 47.2x, providing substantial headroom for planned capex.
- Haryana policy fiscal incentives Jun 1
Government partnership offers Net SGST reimbursements of 30-70% for up to 12 years, capital subsidies up to 30% for Ultra Mega projects, 'Essential Service' status, and dual-grid power supply support.
- India DC market doubling by 2030 May 26
India's data centre market projected to reach US$22 billion by 2030 from US$10 billion in 2025, with capacity expected at 6.5 GW by 2030; hyperscalers have pledged ~US$67.5 billion in India investments.
- 117 MW target by FY28 on track Jun 1
Company targets 117 MW by FY28 and 357 MW by FY32 with 35 MW at Manesar and Rai going live in FY27; data centre revenue already at ₹176 crore in FY26 contributing 11.5% of Q4 revenue.
- Singapore cloud subsidiary incorporated Jun 15
Anant Raj incorporated Anant Raj Cloud Singapore Pte. Ltd. as a 100% wholly-owned subsidiary on June 15, 2026, to focus on international data centre and cloud services including AI.
- AP ₹4,500 cr two-phase project Jun 1
Previously signed MoU with Andhra Pradesh government for ₹4,500 crore investment through ARCPL in two phases of ~₹2,250 crore each for 50 MW data centre and IT park capacity.
- Revenue mix shifting to recurring Jun 2
Data centre contribution reached 7% of total revenue (11.5% in Q4 FY26) with 10-15 year customer contracts, shifting from cyclical project-based real estate to monthly recurring income streams.
TL;DR: Anant Raj is executing an ambitious pivot from traditional real estate to data centre infrastructure, backed by a near-zero-debt balance sheet and 54% cost advantages from existing campuses. The ₹25,000 crore Haryana MoU and 75% DC EBITDA margins are compelling, but execution risk on scaling from 28 MW to 357 MW against well-capitalized competitors like AdaniConneX and Nxtra is substantial. The trend is strongly positive with improving margins, government incentives, and a massive addressable market, though the stock's 34x P/E leaves limited room for missteps in the multi-year capex ramp.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 280 | 316 | 332 | 392 | 443 | 472 | 513 | 535 | 541 | 592 | 631 | 642 | 647 |
| Expenses | 206 | 257 | 252 | 302 | 338 | 369 | 400 | 401 | 398 | 442 | 463 | 472 | 479 |
| Operating Profit | 74 | 60 | 80 | 90 | 104 | 103 | 113 | 134 | 142 | 151 | 168 | 170 | 167 |
| OPM % | 26% | 19% | 24% | 23% | 24% | 22% | 22% | 25% | 26% | 25% | 27% | 26% | 26% |
| Other Income | 10 | 10 | 9 | 9 | 11 | 10 | 11 | 9 | 10 | 10 | 10 | 19 | 29 |
| Interest | 10 | 7 | 8 | 8 | 11 | 4 | 2 | 3 | 3 | 2 | 3 | 3 | 4 |
| Depreciation | 4 | 4 | 4 | 5 | 5 | 5 | 8 | 8 | 9 | 8 | 11 | 13 | 17 |
| PBT | 69 | 57 | 76 | 86 | 99 | 104 | 114 | 132 | 141 | 150 | 164 | 172 | 175 |
| Tax % | 33% | 16% | 23% | 19% | 11% | 14% | 8% | 17% | 16% | 17% | 17% | 17% | 15% |
| Net Profit | 48 | 50 | 60 | 71 | 84 | 91 | 106 | 110 | 119 | 126 | 138 | 144 | 149 |
| EPS in Rs | 1.52 | 1.56 | 1.85 | 2.22 | 2.29 | 2.66 | 3.09 | 3.23 | 3.46 | 3.67 | 4.02 | 4.01 | 4.07 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 484 | 431 | 466 | 480 | 350 | 276 | 250 | 462 | 957 | 1,483 | 2,060 | 2,512 |
| Expenses | 233 | 295 | 325 | 370 | 274 | 224 | 214 | 386 | 760 | 1,149 | 1,568 | 1,856 |
| Operating Profit | 251 | 137 | 141 | 110 | 75 | 52 | 35 | 76 | 197 | 334 | 492 | 656 |
| OPM % | 52% | 32% | 30% | 23% | 22% | 19% | 14% | 16% | 21% | 23% | 24% | 26% |
| Other Income | 8 | 24 | 29 | 49 | 15 | 10 | 20 | 39 | 48 | 37 | 40 | 67 |
| Interest | 55 | 46 | 54 | 55 | 28 | 15 | 31 | 27 | 32 | 35 | 11 | 12 |
| Depreciation | 28 | 27 | 27 | 26 | 22 | 18 | 17 | 17 | 17 | 18 | 30 | 49 |
| PBT | 175 | 87 | 88 | 79 | 40 | 29 | 8 | 72 | 197 | 319 | 491 | 662 |
| Tax % | 19% | 27% | 24% | 23% | 27% | 42% | 97% | 32% | 27% | 17% | 14% | 16% |
| Net Profit | 142 | 70 | 76 | 66 | 40 | 24 | 9 | 53 | 149 | 271 | 426 | 557 |
| EPS in Rs | 4.82 | 2.35 | 2.61 | 2.29 | 1.45 | 0.91 | 0.36 | 1.86 | 4.73 | 7.63 | 12.4 | 15.42 |
| Div. Payout % | 5% | 10% | 9% | 10% | 17% | 9% | 28% | 6% | 11% | 10% | 6% | 6% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 59 | 59 | 59 | 59 | 59 | 59 | 59 | 59 | 65 | 68 | 69 | 72 |
| Reserves | 4,075 | 4,058 | 4,187 | 4,128 | 2,442 | 2,426 | 2,440 | 2,580 | 2,760 | 3,588 | 4,092 | 5,717 |
| Borrowings | 1,356 | 1,489 | 1,721 | 2,600 | 1,591 | 1,691 | 1,663 | 1,283 | 1,079 | 627 | 482 | 681 |
| Other Liabilities | 601 | 643 | 726 | 686 | 509 | 412 | 448 | 463 | 452 | 585 | 592 | 399 |
| Total Liabilities | 6,091 | 6,249 | 6,692 | 7,473 | 4,602 | 4,588 | 4,611 | 4,385 | 4,357 | 4,868 | 5,235 | 6,869 |
| Fixed Assets | 2,555 | 380 | 2,627 | 2,789 | 1,351 | 1,342 | 1,326 | 1,310 | 1,305 | 1,314 | 1,367 | 1,793 |
| CWIP | 169 | 169 | 145 | 192 | 146 | 140 | 90 | 48 | 18 | 22 | 36 | 39 |
| Investments | 663 | 2,876 | 649 | 594 | 402 | 461 | 423 | 460 | 460 | 302 | 311 | 183 |
| Other Assets | 2,704 | 2,824 | 3,272 | 3,899 | 2,703 | 2,645 | 2,772 | 2,567 | 2,573 | 3,231 | 3,520 | 4,853 |
| Total Assets | 6,091 | 6,249 | 6,692 | 7,473 | 4,602 | 4,588 | 4,611 | 4,385 | 4,357 | 4,868 | 5,235 | 6,869 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 249 | -73 | -127 | -305 | 810 | -84 | -150 | 423 | 33 | -26 | 97 | -435 |
| Investing | -123 | -50 | -33 | -229 | 1,707 | -5 | 85 | 31 | -20 | 181 | -72 | -231 |
| Financing | -82 | 109 | 193 | 675 | -2,679 | 43 | 83 | -461 | 2 | 116 | 1 | 1,235 |
| Net Cash Flow | 43 | -14 | 33 | 141 | -162 | -46 | 18 | -7 | 15 | 271 | 25 | 569 |
| Free Cash Flow | 238 | -44 | -162 | -544 | 1,352 | -82 | -118 | 466 | -5 | -55 | 20 | -796 |
| CFO/OP | 114 | -42 | -73 | -263 | 1,088 | -137 | -403 | 588 | 43 | 9 | 34 | -50 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 71 | 82 | 87 | 80 | 65 | 95 | 64 | 17 | 20 | 25 | 22 | 26 |
| Inventory Days | — | — | — | — | — | — | — | — | — | — | — | 220 |
| Days Payable | — | — | — | — | — | — | — | — | — | — | — | 9 |
| Cash Conversion Cycle | 71 | 82 | 87 | 80 | 65 | 95 | 64 | 17 | 20 | 25 | 22 | 236 |
| Working Capital Days | 772 | 708 | 877 | 1,113 | 1,522 | 1,946 | 2,638 | 1,191 | 659 | 480 | 323 | 346 |
| ROCE % | 4% | 3% | 2% | 2% | 1% | 1% | 1% | 2% | 6% | 9% | 11% | 12% |
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Company Information
Anant Raj Ltd was incorporated in 1985 as Anant Raj Clay Products by Ashok Sarin. It is primarily engaged in the development and construction of IT parks, hospitality projects, SEZs, office complexes, shopping malls and residential projects in the State of Delhi, Haryana, Andhra Pradesh, Rajasthan and NCR. The Company has successfully developed more than 20 msf of real estate projects in the Housing, Commercial, IT Parks, Shopping Malls, Hospitality, Residential and Affordable Housing sub-segments. [1] [2]