Anant Raj is a small-cap stock with a market capitalization of over ₹4,500 crore. It is primarily engaged in the development and construction of IT parks, hospitality projects, SEZs, office complexes, shopping malls, and residential projects.
The company's shares have delivered exceptional performance over the last one-year period, providing shareholders with stellar returns. During this period, the stock has moved from ₹48.65 apiece to ₹140, skyrocketing by nearly 188%.
The stock has shown positive performance in seven of the last ten months, with June recording the largest monthly gain of 44.76% and August registering a gain of 18%.
Investors who held the stock for the long term saw significant gains, as it generated a return of almost 836.45% over the past three years, rallying from ₹14.95 apiece to ₹140. During this period, an investment of ₹1 lakh would have turned into over ₹9.3 lakh currently.
In addition, over the past four years (including the current year), the stock has been consistently trending upward with positive returns each year. In CY20, it yielded a return of almost 55%, which was followed by an even more impressive return of 185% in CY21.
This trend extended in CY22 with a return of 44.93%, and in the current year so far, the stock has already rallied by 24.80%.
Meanwhile, FIIs have been consistently increasing their stake in the company for the last five quarters. In the recent March 2023 quarter, FIIs raised their stake to 10.7%, as per Trendlyne, from 6.4% in the same quarter of the last fiscal year. In the December quarter, FII's stake stood at 9.1%.
For the March-ending quarter, the company reported improved performance, with its net profit surging to ₹48 crore from ₹23 crore in Q4FY22. The revenue from operations during the same quarter came in healthy at ₹280 crore, an increase of 29.62% compared to ₹216 crore in Q4 FY22. Sequentially, the revenues were up by 5.26%.
The company managed to cap its operating expenses at ₹206 crore during the quarter, which helped its operating profit jump by 39.62% YoY to ₹74 crore in Q4 FY23 from ₹53 crore in Q3 FY23. The EBITDA margin expanded by nearly 1400 bps to 26% in Q4 and 600 bps sequentially.
The EPS (Earnings Per Share) improved to ₹1.52 in Q4 from ₹0.77 in the year-ago quarter. At the prevailing price, the stock trades at a price-to-earnings multiple of 29.7x, which is much lower compared to the industry P/E of 83.7x.
Further, the company recorded a remarkable 185% surge in consolidated net profit for the financial year 2022–23, to ₹151 crore. While the revenue from operations during 2022–23 stood at 957 crore, a stellar growth of 107% from ₹462 crore in FY22.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.