Investing In Anant Raj Stock: Has it been a multibagger? Should investors buy it now?

NiftyTrader • July 3, 2024

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Anant Raj, a well-known NCR real estate developer, has demonstrated impressive stock performance, rising by 2340% in just six years. DAM Capital projects a 27% increase in the stock, citing positive market trends and promising future development.

Market investment in shares has always been thought to be a potential source of wealth creation. The importance of the time factor is one of the prominent concepts of stock market investment. This ability to identify and retain the good ones for a very long period can be very rewarding.

Among these stocks, Anant Raj, a well-known real estate developer in the NCR, delivered an incredible return over a period of six years. Six years ago, the stock was selling at just Rs 15 a share. Since then, it has experienced an incredible 2340% climb to its current level of Rs 487.

Interestingly, Anant Raj has made positive figures in the current year the company having still registered a 65% increase. He has also closed the prior four calendar years by posting good gains on a consistent manner. It delivered enviable returns in CY21 and CY23, with gains of 186% and 164% respectively.

Anant Raj possesses 167 acres in the prestigious Golf Course Extension Road, Sector 63A, Gurugram, out of its 312 acres of completely paid land bank.

Further gains expected

Domestic brokerage company DAM Capital thinks the stock still has enough of momentum to rise much higher despite the recent big rebound in shares. With a target price of Rs 620, the brokerage company has started covering the stock in its most recent note. This represents a significant 27% upside from the stock’s previous closing price of Rs 487 per share.

The brokerage pointed out that over the last three years, the NCR has continuously shown greater absorption rates than supply, thanks to continuing infrastructure initiatives that enhanced accessibility and increased affordability.

By FY26, pre-sales are predicted by the brokerage to climb from Rs 28 billion to Rs 34 billion, while collections are predicted to jump from Rs 9 billion to Rs 26 billion. The brokerage anticipates finishing the company’s residential portfolio by FY30, with a potential revenue of Rs 150 billion.

The firm is transforming its commercial buildings into data center-certified facilities in response to the increasing demand for digital services. This allows them to establish a competitive advantage through efficient and quick deployment methods.

Anant Raj has strong growth prospects in both residential construction and data centers, according to DAM Capital, with projected revenue and EBITDA growth.