This multibagger real estate stock crashes 50% from recent high. What should investors do?

Anant Raj, a leading real estate developer in the NCR region, has seen its share price crash steadily in recent weeks to levels not seen in many months. Although the stock has managed to stage a comeback in the last few trading sessions, it is still trading significantly below its recent peak of ₹947 apiece.

The shares have fallen sharply from their December peak of ₹947 to the current market price of around ₹475, resulting in a 50% crash in just four months. This correction came after the stock witnessed a one-way rally between June 2022 and December 2024, delivering a massive return of 1,757% to its shareholders.

The company is engaged in real estate development with a focus on residential, commercial, and hospitality projects. It also provides data center space and real estate, as well as EPC services for data center build-outs.

Analysts back Anant Raj’s bold bet on India’s data center growth

Despite short-term volatility in the stock price, analysts remain confident about the company’s growth prospects, given the rising demand for data centers in India, driven by both structural and cyclical factors.

A large internet user base generating troves of data, the government’s data localization push, and AI adoption are some of the structural tailwinds. According to ICRA estimates, India’s data center (DC) operational capacity is expected to increase to 2,000–2,100 MW by March 2027 from around 1,150 MW as of December 2024.

Anant Raj forayed into the data center sector in 2023 with a vision to invest ₹100 billion over the next few years to develop a 307 MW data center footprint. Domestic brokerage firm JM Financial said that the company plans to develop Tier III and IV data centers with up to 157 MW IT load by modifying existing IT Park buildings in Haryana.

The remaining 150 MW will be developed through greenfield projects across three locations. The company has recently launched its cloud platform, “Ashok Cloud,” with 0.5 MW IT load in the current capacity, and plans to allocate 14 MW of the total capacity to cloud services by FY26.

Entry into cloud services

In December 2024, Anant Raj Cloud teamed up with Orange Business to expand its offerings. Anant Raj Cloud launched its sovereign cloud platform, ‘Ashok Cloud,’ with the objective of providing cloud services alongside its data center business to enterprises and public sector undertakings in India.

According to the brokerage, Orange Business has designed and built and is now operating multiple services for Anant Raj Cloud’s platform, including setting up a data center and cloud infrastructure. The deployment phase is completed, and Anant Raj has already started onboarding its customers. Initial 1st Phase capacity already operational at Manesar, Haryana.

In the future, Anant Raj Cloud plans to introduce additional services to support the growth of its customers’ businesses more effectively.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.