At a glance
Anant Raj Ltd, a legacy Delhi-based real estate firm, has pulled off a 5-year revenue growth of 4.5x and profit growth of 10x, climbing from ₹957 Cr in FY23 to ₹2,060 Cr in FY25 revenue. But with a 44x P/E, low dividend, and a 301-day cash cycle — is this a reinvention story or a leverage-laced illusion?
1. 🏙️ About the Company
Anant Raj Ltd is a real estate developer established in 1985 by Ashok Sarin. Its footprint spans:
- Residential Projects: Group housing, affordable housing townships
- Commercial: IT Parks, SEZs, shopping malls
- Hospitality: Hotels and service apartments
- New Bets: Warehousing, Data Centers (6 MW already live)
They’ve developed 20+ million sq. ft. and have pivoted toward asset-heavy annuity streams like data infra and warehousing, riding the next real estate wave in NCR and North India.
2. 👨💼 Key Managerial Personnel (KMP)
- Ashok Sarin – Founder & Chairman
- Amit Sarin – MD & CEO, architect of the data center and affordable housing strategy
- Recent Board Update: Reappointments of key directors and MD ratified; new Company Secretary onboarded June 2025
Old promoters, new ambitions.
3. 🧾 Financial Performance (FY21–FY25)
Revenue (₹ Cr)
| Year | Revenue |
|---|---|
| FY21 | ₹250 |
| FY22 | ₹462 |
| FY23 | ₹957 |
| FY24 | ₹1,483 |
| FY25 | ₹2,060 |
That’s a 5-year CAGR of 49% — one of the best in listed real estate.
Net Profit (₹ Cr)
| Year | PAT |
|---|---|
| FY21 | ₹9 |
| FY22 | ₹53 |
| FY23 | ₹149 |
| FY24 | ₹271 |
| FY25 | ₹426 |
💥 From ₹9 Cr to ₹426 Cr in 5 years = 77% profit CAGR.
Operating Margins & Returns
| Metric | FY25 |
|---|---|
| OPM | 24% |
| ROCE | 11.2% |
| ROE | 10.9% |
| P/E | 44x |
| P/B | 4.5x |
| Book Value | ₹121 |
| EPS | ₹12.40 |
Strong EPS growth, but ROE still trails real estate giants.
4. 📉 Forward-Looking Fair Value (FV)
Assumptions:
- FY26E PAT: ₹520 Cr
- P/E Band: 25x–35x (in line with Prestige, Brigade)
- Market Cap Range: ₹13,000–₹18,200 Cr
- Shares Outstanding: ~69 Cr
- Fair Value per share = ₹188–₹263
⚠️ CMP is ₹545 → stock is trading 2x above upper FV = fully priced in unless FY26 beats big.
5. 🏗️ Growth Triggers & Strategic Moves
- Data Centers: 6 MW already commissioned. Long-term annuity cash flows expected. Big for valuations.
- Affordable Housing: Big push across NCR region under PMAY and state-backed incentives.
- Debt Reduction: From ₹1,079 Cr (FY23) to just ₹482 Cr (FY25)
- Leased Assets Monetization: Warehousing and commercial leasing can act as REIT-lite cash flows.
6. 🧠 EduInvesting Take
This is not the Anant Raj of 2018 — where ROCE was 1% and profits were eaten by depreciation.
The new Anant Raj:
✅ Has growth momentum
✅ Is now deleveraged
✅ Is betting right — data infra, warehouses, and urban housing
✅ Is showing up on DII radar (from 0.56% to 6.57%)
But…
❌ The valuation is euphoric.
❌ The cash conversion cycle is 301 days — meaning money comes very, very late.
❌ Promoter holding has dropped 5% in 3 years — not a great sign.
TL;DR:
Anant Raj is doing a solid job of reinvention. But it has become a “valuation trap in disguise” at these levels unless you believe in a mega breakout in Delhi-NCR realty.
7. ⚠️ Risks & Red Flags
- 301-day working capital cycle: That’s a liquidity sinkhole.
- High receivables and delayed project cashflows typical in Indian real estate.
- P/E of 44x is higher than Brigade and Oberoi — doesn’t justify based on RoE.
- Promoter holding fell from 65% to 60%, while public HNI shareholding shot up — classic smallcap pattern before institutional exit.
TL;DR – Should You Chase This Rally?
If you’re a believer in India’s real estate + data infra combo and want a second-line pick behind DLF, Godrej, Macrotech…
Anant Raj is a high-risk, high-beta proxy with improving fundamentals.
But don’t forget: It’s a real estate stock. The party’s fun — until the music stops.
Author: Prashant Marathe
Date: 13 June 2025
Tags: Anant Raj Ltd, Real Estate Stocks, Data Centers India, EduInvesting, NCR Realty Boom, Affordable Housing, High Working Capital Risks
