ANANTRAJ - Investment Analysis

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

Investment Rating: 3.6

🧾 Fundamental Analysis Summary

Anant Raj Ltd. (ANANTRAJ) operates in the real estate sector and shows signs of earnings growth and low debt, but its capital efficiency and institutional sentiment are relatively weak. While the PEG ratio suggests undervaluation relative to growth, the modest ROE/ROCE and recent drop in FII/DII holdings raise caution for long-term investors.

Metric Value Interpretation

P/E Ratio 43.1 Slightly above industry average — priced for growth

PEG Ratio 0.43 Attractive — undervalued relative to earnings growth

ROE / ROCE 10.9% / 11.2% Weak — below ideal levels for long-term compounding

Dividend Yield 0.13% Minimal — not suitable for income-focused investors

Debt-to-Equity 0.12 Strong — low leverage enhances stability

EPS ₹13.4 Reasonable — supports current valuation

PAT Growth (QoQ) +5.9% Mild — not a breakout quarter

Book Value ₹121 Price-to-book ~4.8× — fair for real estate sector

RSI / MACD 55.4 / +6.69 Neutral — no strong momentum signal

DMA 50 / 200 ₹554 / ₹559 Price hovering near averages — consolidation phase

52W Price Range ₹366 – ₹948 Currently at 36.5% of 52W high — potential upside if fundamentals improve

FII/DII Change -2.26% / -0.35% Negative — institutional sentiment weakening

📉 Ideal Entry Price Zone

Entry Zone: ₹520 – ₹550

Near DMA levels and RSI neutral zone — better risk-reward.

Avoid chasing above ₹600 unless ROE/ROCE show improvement.

🧭 Exit Strategy & Holding Period

Holding Period

2–3 years — moderate-term holding recommended unless ROE improves.

Exit Strategy

Exit if ROE remains below 12% and PEG rises above 1.0.

Consider trimming if price nears ₹850–₹900 without matching earnings growth.

Key Metrics to Monitor

ROCE trending above 15%

PEG ratio staying below 0.7

PAT growth > 20% YoY

Institutional holding stabilizes or improves

🧠 Final Thoughts

Anant Raj Ltd. offers a low-debt, growth-oriented profile with an attractive PEG ratio, but its capital efficiency and institutional sentiment are not strong enough to justify a high-conviction long-term hold. It may suit tactical investors looking for a rebound from current levels, but long-term investors should wait for improvement in ROE/ROCE and broader sector momentum.

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