Motilal Oswal has initiated coverage on Anant Raj with a Rs 710 target, citing a strong project pipeline valued at Rs 50-55 billion for FY27. Investors are tracking the company’s dual-growth strategy: luxury real estate development in Delhi-NCR and the upcoming demerger of its data center business. The company recently reported a 19% rise in Q1 FY27 net profit.
Motilal Oswal has initiated coverage on Anant Raj, setting a target price of Rs 710. The brokerage’s outlook is driven by the real estate developer’s ambitious plans to expand its luxury housing footprint in the Delhi-NCR region while simultaneously scaling its digital infrastructure business.
This positive sentiment aligns with the company's recent performance. In its financial results for the first quarter of fiscal year 2027, Anant Raj reported a revenue of Rs 631.4 crore and a net profit of Rs 149.2 crore. This 19% year-on-year increase in profit highlights the company's current operational momentum as it prepares for a high-activity phase in the coming quarters.
The real estate developer has a busy pipeline ahead, with projects totaling a Gross Development Value (GDV) of Rs 50-55 billion planned for launch in FY27. A key focus is the upcoming project 'The Estate One' in Gurugram, which offers approximately 0.90 million square feet of saleable area. Analysts believe that these scheduled launches will be critical in driving pre-sales volume over the next two years, providing the necessary cash flow to support the company’s expansion goals.
Alongside its real estate focus, Anant Raj is aggressively building its data center capacity, aiming for 63 MW by December 2026. To streamline operations and unlock value for shareholders, the board approved a composite scheme of arrangement on July 21, 2026, to demerge its data center and cloud services business. This segment will be housed under a separate, publicly listed entity named Ashok Cloud Private Limited. This structural shift is designed to allow both the real estate and digital infrastructure arms to pursue independent growth strategies.
Despite the positive outlook, investors should consider the inherent risks. The company remains highly dependent on the luxury housing market in the Delhi-NCR region, and any cooling of demand in this specific area could affect future cash flows. Furthermore, the rapid scaling of the data center business involves significant execution risks, including the management of large capital expenditures. The proposed demerger also introduces regulatory and operational complexities that will require careful navigation.
The key focus for shareholders in the coming months will be the successful execution of the planned real estate launches and the progress of the demerger process. Watching how the company manages its capital allocation between these two distinct business models will be essential for understanding its long-term financial stability.