ANANTRAJ - Fundamental Analysis: Financial Health & Valuation

📊 Financial Overview: Anant Raj Ltd. presents a mixed financial profile. While the company maintains a low debt-to-equity ratio of 0.11, its ROCE of 6.71% and ROE of 6.17% reflect modest capital efficiency. EPS stands at ₹7.20, and quarterly PAT rose to ₹69.7 Cr from ₹65.1 Cr, showing a strong profit variance of 64.8%. The stock is trading above both DMA 50 and DMA 200, suggesting technical support, though momentum indicators like MACD (-0.69) and RSI (50.5) remain neutral.

💰 Valuation Metrics: The stock trades at a steep P/E of 94.0, significantly above the industry average of 42.4, indicating overvaluation. The P/B ratio is ~5.96 (₹644 / ₹108), and the PEG ratio of 1.63 suggests moderate overvaluation relative to growth. Dividend yield is minimal at 0.11%, offering little income support.

🏢 Business Model & Competitive Edge: Anant Raj operates in real estate development, with a focus on residential, commercial, and industrial projects. Its land bank and strategic locations offer long-term potential. However, the business is cyclical and sensitive to regulatory changes, interest rates, and market sentiment. Execution capability and asset monetization remain key drivers.

📉 Entry Zone: A more attractive entry zone lies between ₹580–₹610, closer to the 200 DMA and below recent highs, offering better valuation comfort.

📈 Long-Term Holding Guidance: Suitable for long-term investors with moderate risk appetite seeking exposure to real estate growth. Accumulate on dips and monitor project execution, regulatory developments, and asset monetization strategies.