ANANTRAJ - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.6

Let’s decode Anant Raj Ltd. (ANANTRAJ) — a real estate player with improving profit trajectory and low debt, but lagging return ratios and soft institutional sentiment.

💰 Core Financials Overview

Profitability

EPS: ₹13.4 — moderate earnings, not yet justifying high PE.

Quarterly PAT Growth: 38.3% — positive momentum, though base is modest.

ROE: 10.9% & ROCE: 11.2% — below ideal thresholds; indicates asset-heavy operations typical of real estate.

Leverage & Stability

Debt-to-Equity: 0.12 — disciplined capital structure, a plus in cyclical sectors.

Dividend Yield: 0.13% — symbolic, company likely reinvesting gains.

📊 Valuation Snapshot

Metric Value Remarks

P/E Ratio 43.1 Elevated vs Industry PE: 40.2

P/B Ratio ~4.8 Premium vs Book Value ₹121

PEG Ratio 0.43 ✅ Suggests earnings growth is supporting valuation

Intrinsic Value ❌ Slightly below CMP Valuation stretch given core returns

🧠 Business Model & Competitive Advantage

Engaged in luxury and commercial real estate development, primarily in Delhi-NCR.

Holds significant land bank assets, which could unlock future value if monetized efficiently.

However, return ratios and muted DII/FII sentiment (FII ↓ 2.26%, DII ↓ 0.35%) suggest concerns about execution efficiency or sector headwinds.

📈 Technical & Momentum Signals

RSI: 55.4 — neutral zone; no strong overbought/oversold bias.

MACD: 6.69 — mildly bullish trend.

CMP of ₹578 is below DMA 200 & 50, indicating consolidation.

52W Range: ₹366 – ₹948; CMP ~36% off high — hints at a cooling phase post run-up.

🎯 Recommended Entry Zone & Long-Term View

Entry Zone: ₹510–₹540 — ideal on dips or correction, especially if volume supports trend reversal.

Long-Term Strategy

Promising PAT growth needs to reflect consistently in ROE/ROCE.

Monitor asset monetization and project completion timelines.

Suitable for long-horizon investors with appetite for sector cyclicality and latent value.

Want to contrast this with peers like DLF, Oberoi Realty, or Godrej Properties to get a clear edge comparison? I can chart them out for you 🔍📐.

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