Anant Raj reported a revenue of ₹590 crore for the June quarter, which was up 26% from last year and 10% sequentially and was also higher than Motilal Oswal’s estimates.
Motilal Oswal said Anant Raj’s residential segment is expected to deliver 14 million square feet of saleable area over financial year 2025-2030, which will help generating a cumulative net operating profit after tax of ₹7,200 crore.It said the residential business cash flow, discounted at an 11.6% weighted average cost of capital (WACC), along with a 5% terminal growth rate, accounts for ₹250 crore in annual business development expenses, yielding a gross annual value (GAV) of ₹8,700 crore or ₹253 per share.
The annuity business cash flow is discounted at a capitalisation rate of 9.5%, valuing it at ₹100 crore or ₹30 per share, the brokerage said.Motilal Oswal said it expects the company’s Data Centre revenue to grow materially, with capacity increasing from 6 MW in financial year 2024 to 307 MW by financial year 2032, along with a shift towards cloud services, which will expand from 0.5 MW to 77 MW over the same period.
“We model the free cash flows for the data centre business till FY32, using a discount rate of 11.6%, a rental escalation of 3%, and a terminal growth rate of 3%, resulting in an enterprise value of ₹14,900 crore of ₹435 per share, post deferral of the cloud capex in the initial years,” the brokerage added.
All five analysts that have coverage on the Anant Raj stock have a “buy” rating.
Anant Raj shares were trading 0.22% lower at ₹561.85 apiece at 10.30 am on Tuesday. It has declined 34.33% this year, so far.
Also Read: IEX shares get another downgrade; Bernstein says bad news ‘not over yet’
