Buy Anant Raj, target price Rs 1,100: Motilal Oswal Financial Services

Motilal Oswal Financial Services has a buy call on Anant Raj with a target price of Rs 1,100. The current market price of Anant Raj is Rs 851.1. Anant Raj, incorporated in 1985, is a Small Cap company with a market cap of Rs 28638.48 crore, operating in the Real Estate sector.

Anant Raj's key products/revenue segments include Income From Real Estate Development and Rentals & Service Charges for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 523.75 crore, up 8.74 % from last quarter Total Income of Rs 481.66 crore and up 53.67% from last year same quarter Total Income of Rs 340.83 crore. The company has reported net profit after tax of Rs 104.44 crore in the latest quarter.

The company's top management includes Mr.Amit Sarin, Mr.Aman Sarin, Mr.Ashim Sarin, Mr.Brajindar Mohan Singh, Mr.Rajesh Tuteja, Mrs.Kulpreet Sond, Mr.Maneesh Gupta, Mr.Veerayya Chowdary Kosaraju. Company has Ranjana Vandana & Co. as its auditors. As on 30-09-2024, the company has a total of 34 Crore shares outstanding.

Investment Rationale
Strong pre-sales, collections, and operational cash flows underpin Anan Raj's growth. While execution risks remain, we expect significant revenue and EBITDA margin expansion, driving long-term value creation. We initiate coverage on the stock with a BUY rating and a target price of Rs 1,100.

Promoter/FII Holdings
Promoters held 60 per cent stake in the company as of 30-Sep-2024, while FIIs owned 13.04 per cent, DIIs 6.69 per cent.