Anant Raj shares rise 4% as Motilal Oswal kicks off coverage with 'buy' call, sees 31% upside

Over the past year, Anant Raj shares have recorded a 12-month run of 200 percent, tripling investors' wealth.

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Real estate developer Anant Raj Ltd shares gained 4 percent in the morning deals on December 20, after domestic brokerage Motilal Oswal initiated coverage on the firm.

Motilal Oswal issued a 'buy' tag on the firm, with a price target of Rs 1,000 per share, indicating an upside potential of around 31 percent from the previous session's closing price.

At 10 am, shares of Anant Raj were quoting Rs 866.45 per share, higher by 3.44 percent on the NSE.

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The brokerage said that Anant Raj is transitioning from its stronghold in real estate to a diversified business model with strategic investments in data centers (DCs) and cloud services. This shift capitalizes on India's burgeoning data localization and digital transformation trends.

Further, Anant Raj is on a firm footing, with robust real estate sales and growing rental income from its DC and cloud operations. "With a planned capacity of 300MW for DC over the next 4-5 years, the company is leveraging its existing technology parks to enhance execution speed and cost efficiency," added Motilal Oswal.

Anant Raj's foray into higher-margin cloud services (IaaS) in partnership with Orange enhances its profitability potential, with cloud capacity projected to rise to 25 percent by FY32.

Strong pre-sales, collections, and operational cash flows underpin the firm’s growth. While execution risks remain, the brokerage expects significant revenue and EBITDA margin expansion, driving long-term value creation.

Over the past year, Anant Raj shares have recorded a 12-month run of 200 percent, tripling investors' wealth. On the other hand, the frontline index Nifty 50 gained around 13 percent during the same time period.

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