Nomura initiated coverage on Anant Raj with a 'buy' rating and a target price of Rs 750, noting the company is poised to successfully execute medium-term data centre and cloud targets. The company is in a comfortable position with net debt and equity, the brokerage note stated.
The brokerage further observed a strong demand in the company's global cluster for early recovery data, which would enable the residential segment to generate robust cash flows.
Anant Raj is also expected to launch two-three projects in the coming year and another three projects in financial year 2026.
Risk-reward ratio of the share is largely skewed towards ‘reward', post share price correction. Nomura noted that Anant Raj share price had corrected 30% over the past month, against the benchmark Nifty 50's decline of 1%. Earlier, there was a global sell-off in technology stocks that had taken place due to concerns over AI. Here, the sell-off was broadly driven by the emergence of a low-cost artificial intelligence model.
Nomura initiated with a 'buy' rating, based on robust cash inflow, successful execution and outlook.
Cash Flow, Execution And Pricing
The brokerage expects the company to generate robust cash flows from the residential segment. This is attributed to the solid launch pipeline in Sector 63A, Gurugram. This is set to be on the already paid-for legacy land parcel.
Nomura also expects the company to successfully execute its medium-term data centre and cloud targets. Further, up to half the capex can be funded from internal accruals, according to the brokerage.
The brokerage has also highlighted concerns over data centre pricing risk, stating it appeared to be overdone. It noted that India remained largely under-penetrated in data centres. Nomura supported the stand by citing regulations like Digital Personal Data Protection Act, 2023, that are set in place to drive demand for India-based DC and Cloud offerings.
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