Anant Raj shareholders are facing a tough year, with the stock experiencing a sharp reversal from its recent highs. After delivering impressive returns of 190% in 2024 and 163% in 2023, Anant Raj's share price has crashed 35.5% so far in 2025, putting it on track for its steepest annual fall since 2018.
What's Behind the Fall?
The decline began after China's AI model, DeepSeek, sparked widespread panic by questioning the massive capital consumed by data-intensive AI models. As data centers are closely tied to artificial intelligence, this triggered concerns about Anant Raj's investments in the sector.
Company Overview
Anant Raj has been a notable player in the NCR real estate market since the 1970s, developing residential complexes, affordable housing, hotels, and IT parks. In 2021, the company expanded into data centers, aiming to scale up its capacity from 28 MW to 63 MW by FY27 and 307 MW by FY32.
Expansion Plans
Anant Raj Cloud, a wholly-owned subsidiary, is leading the expansion of data center, colocation, and cloud services across Manesar, Rai, and Panchkula. The company targets a total IT load of 117 MW by FY28, with full capex funding already secured. The management aims to scale up data center revenues to ₹1,200 crore by FY27 and ₹9,000 crore by FY32.
Analyst Views
Despite the stock's sharp fall, analysts remain positive on Anant Raj, citing its diverse portfolio and growth potential. JM Financial has a 'buy' rating with a target price of ₹844 apiece, while Motilal Oswal has maintained a 'buy' rating with a target price of ₹793 apiece.
- Analysts expect the company's revenue from data centers to grow materially, with capacity increasing from 6 MW in FY24 to 307 MW by FY32.
- The shift towards cloud services is also expected to drive growth, with capacity expanding from 0.5 MW to 75 MW over the same period.
Remember, this is perspective, not prediction. Do your own research before making any investment decisions.