Anant Raj targets 78% upside with ₹4,500 Cr Andhra data center bet; creates 16,000 jobs.

Anant Raj’s ₹4,500 Crore Andhra Bet: A Traders’ Momentum Test at 35% Below 52-Week Highs

Anant Raj Ltd’s ₹4,500 crore data centre announcement has traders asking one question: Is this the catalyst to break the stock out of its 35% drawdown from 52-week highs, or just another news-driven fade in a bearish technical setup? With the stock at ₹616.10 and trading 64% above its yearly lows, the answer depends on whether you trust analyst conviction or RSI sell signals.

What Happened: The Andhra Pradesh Data Centre Deal

Anant Raj Cloud Private Limited (ARCPL), the company’s wholly-owned subsidiary, signed an MoU with the Andhra Pradesh Economic Development Board on November 14, 2025, to develop data centre facilities and an IT park in a two-phase project. The ₹4,500 crore investment will be funded partially through a recent ₹1,100 crore QIP and is expected to create 16,000 jobs (8,500 direct, 7,500 indirect). This expansion adds to the company’s existing 307 MW data centre pipeline across Haryana and targets 117 MW installed capacity by FY28, scaling to 307 MW by FY32.

Stock Performance & Analyst View: Bullish Targets vs. Bearish Price Action

At ₹616.10, Anant Raj trades 35% below its 52-week high of ₹947.90 and 63% below its all-time high of ₹1,467.00 set in 2006. The stock initially rallied 4% to ₹639.50 on the announcement but has since pulled back, suggesting cautious institutional follow-through. Despite the tepid price action, analyst sentiment remains overwhelmingly bullish.

According to Motilal Oswal (December 20, 2024), the stock carries a Buy rating with a ₹1,100 target, implying 78.5% upside from current levels. Trendlyne.com data shows 82.57% of analysts rate it a Buy with an average ₹920 target (49.3% upside). Simply Wall St (April 25, 2025) reports a four-analyst consensus of ₹960, representing 55.8% upside. As of November 17, 2025, Mint confirms zero Hold or Sell ratings among three covering analysts.

What This Means for Traders: Decoding Mixed Signals

The 4% intraday spike followed by weakness signals algorithmic selling into retail enthusiasm. Volume-based technical analysis shows negative momentum, with RSI generating a SELL signal and the stock trading below the critical ₹626.40 support level. For short-term traders, this is a momentum trap until proven otherwise.

Entry considerations split along risk tolerance. Conservative traders should wait for a sustained close above ₹650 with volume exceeding 3 million shares daily to confirm institutional conviction. Aggressive dip-buyers can scale in between ₹600-₹615, using the 52-week low of ₹376.15 as a catastrophic stop-loss reference. The ₹947.90 52-week high becomes the primary resistance target on any breakout attempt.

Risk factors are material: the company’s TTM P/E of 48.56 trades at a 68% premium to the sector’s 28.82, leaving no margin for execution missteps. The data centre sector faces power cost inflation and potential delays in government approvals. Most critically, the stock’s -27.58% YTD performance shows macro headwinds overriding micro tailwinds.

Next catalysts include Q3 FY26 earnings (projected February 18, 2026) and concrete Phase 1 construction milestones. Watch for updates on the Orange Business partnership’s revenue contribution and any capacity pre-leasing announcements from the Haryana projects.

The Bigger Picture: Real Estate’s Infrastructure Pivot

Anant Raj’s transformation mirrors a broader real estate sector pivot toward digital infrastructure, where data centre yields (12-15% IRR) dwarf traditional residential margins. With Google committing $15 billion to Andhra Pradesh and global data centre capacity projected to hit 122 GW by 2030, regional players with land banks and power access command scarcity premiums. However, the sector’s capital intensity and long gestation periods create cash flow volatility that equity markets penalize before revenue streams materialize.

Trading Takeaway

Anant Raj offers a high-conviction, high-risk setup. Analyst targets suggest 50-78% upside, but technicals scream caution. If you’re already positioned, hold through Q3 earnings while trailing stops at ₹580. New entries require patience: scale in on weakness below ₹610 or chase strength above ₹650 on 3x volume. The Andhra deal validates the thesis, but price action hasn’t confirmed it yet.

Disclaimer: This blog has been written exclusively for educational purposes and does not constitute investment advice or personal recommendations. The author is not SEBI-registered as an investment advisor. Recipients should conduct their own research and consult a qualified, SEBI-registered investment advisor before making any investment decisions. Investments in the securities market are subject to market risks; read all related documents carefully before investing.