ANANTRAJ - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:14 pm

Fundamental Rating: 3.3

📊 Core Financials:

- Profitability: PAT improved from 69.7 Cr. to 74.2 Cr. (+39% QoQ), showing growth momentum.

- Margins: ROCE at 6.71% and ROE at 6.17% are modest, reflecting average efficiency.

- Debt: Debt-to-equity at 0.11 → low leverage, balance sheet stability.

- EPS: 7.80 ₹, relatively low compared to valuation.

💹 Valuation Indicators:

- P/E: 74.1 vs Industry PE of 33.7 → significantly overvalued.

- P/B: 551 ₹ / 111 ₹ ≈ 4.96, trading at a steep premium.

- PEG Ratio: 1.28 → fairly valued relative to growth.

- Intrinsic Value: Estimated fair value ~450–470 ₹, suggesting current price is overvalued.

🏢 Business Model & Competitive Advantage:

Anant Raj operates in real estate and infrastructure development, focusing on residential, commercial, and industrial projects. Competitive advantage lies in land bank holdings and diversified portfolio. However, modest return ratios and stretched valuations limit attractiveness.

📈 Entry Zone & Long-Term Guidance:

- Entry Zone: Attractive accumulation range between 450–470 ₹.

- Long-Term Holding: Suitable for cautious investors; growth potential exists, but valuations and profitability metrics warrant patience.

Positive

• Quarterly PAT growth (+39%) shows operational improvement.
• Low debt-to-equity (0.11) ensures financial stability.
• FII holdings increased (+3.06%), showing strong foreign investor confidence.
• Strong trading volumes indicate liquidity and investor interest.

Limitation

• High P/E ratio (74.1) compared to industry average (33.7).
• ROCE (6.71%) and ROE (6.17%) are modest, reflecting weak efficiency.
• P/B ratio of 4.96 indicates premium valuation.
• Technical weakness: trading below DMA 50 (581 ₹) and DMA 200 (581 ₹).

Company Negative News

• DII holdings decreased (-0.29%), showing reduced domestic institutional support.
• MACD (-22.2) reflects bearish technical sentiment.
• RSI at 40.3 indicates weak momentum.

Company Positive News

• Quarterly PAT growth highlights improving performance.
• FII holdings increased significantly, showing foreign investor confidence.
• Low debt levels enhance financial resilience.

Industry

• Real estate sector supported by urbanization, infrastructure growth, and housing demand.
• Industry PE at 33.7 indicates moderate valuation compared to Anant Raj’s premium.
• Sector growth expected with government initiatives and rising demand for commercial/residential projects.

Conclusion

⚖️ Anant Raj shows moderate fundamentals with improving profitability and low debt, but valuations remain stretched. While foreign investor confidence is a positive, modest return ratios and weak technicals limit near-term attractiveness. Investors should consider entry near 450–470 ₹ for value-conscious positioning, with long-term holding viable for cautious investors seeking exposure to real estate growth.