Anant Raj: PAT growth of 78% & revenue growth of 51% for H1-25 at a PE of 74
Revenue CAGR of 34% for FY24-29 on the back of strong revenue visibility. Rs 15,000 cr revenue over a period of 5 years from real estate. Rs 3300 cr of rental income from data centers by FY29
1. Real Estate Development, Construction & Infrastructure Development
anantrajlimited.com | NSE: ANANTRAJ
2. FY21-24: PAT CAGR of 189% & Revenue CAGR of 78%
3. Strong FY24: PAT up 71% & Revenue up 51%
4. Strong Q2-25: PAT up 75% & Revenue up 54%
5. Strong H1-25: PAT up 78% & Revenue up 51% YoY
6. Business metrics: Improving but weak return ratios
7. Strong outlook: Revenue growth of 35%+
i. FY24-29: Strong Revenue visibility in real estate business
Potential to grow from Rs 1,500 cr revenue in FY24 to Rs 3000 cr per year by FY29.
~INR 15,000crs of revenue potential in next 4 to 5 years from residential sales in Sector 63A, Gurugram
ii. FY24-29: Strong Revenue visibility in Data Center Business
One can expect rental of Rs 3300 cr by FY29.
Scale up to 307 MW IT Load Data Center within the next 4 to 5 years
Converting existing 5.66 msf commercial property into a 157 MW Data Centre, with another 150 MW expansion planned in Rai and Panchkula;
Expected rentals of INR 3,300 crores once the 307 MW is fully operational.
iii. FY24-29: Revenue CAGR of 34%
Expected revenue in FY29 of Rs 3000 (real estate)+ Rs 3300 (data center rentals) would implies revenue rowing Rs 6300 cr in FY29 from Rs 1483 cr in FY24 at a CAGR of 34%. The Rs 6,300 cr of revenue does include any other revenue from other parts of its residential and commercial businesses.
8. PAT growth of 78% & revenue growth of 51% in H1-25 at a PE of 74
9. Hold?
If I hold the stock then one may continue holding on to ANANTRAJ
ANANTRAJ has a track record of delivering strong performance with a FY20-24 PAT CAGR of 189% & Revenue CAGR of 78%. The historic performance was continued in FY24 and followed up in H1-25 with an extremely strong performance.
FY24 PAT: I am very pleased to share that this is the company's best profit so far, which we have achieved over the last 15 years.
The outlook of ANANTRAJ growing 4X+ form a Rs 1483 cr business to a Rs 6300 cr business by FY29 is a strong reason to continue with it. H1-25 execution shows that its moving in the right direction to achieve FY29 targets.
10. Buy?
If I am looking to enter ANANTRAJ then
ANANTRAJ has delivered PAT growth of 78% with revenue growth of 51% in H1-25 at a PE of 74 which makes the valuations acceptable in the short term.
The outlook of ANANTRAJ to deliver revenue CAGR of 34%+ for FY24-29 at a PE of 74 makes the valuations quite acceptable over the longer term
ANANTRAJ is a story which will develop over the next 5 years and one needs to keep a close watch on the execution as the margin of safety is limited at a PE of 74.
Since ANANTRAJ is a longer term story one should build positions over a period of time as the execution evolves, given the limited margin of safety
Previous Coverage of ANANTRAJ
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I'd define:
P/E (Intrinsic) = 8.78
P/E (Fair)
= 100×((1.0878×1.2272420769×1.3045112782)^(1÷3)−1)
= 20.3120268368
Intrinsic Value is subjected to the Financial Performance Result.
Target Price and Fair Value are subjected to the individual thoughts and assumptions.
Fair Value & Target Price ≠ Intrinsic Value
But in the long possible run, the Quoted Price and Intrinsic Value converge to each other pretty closely.