Meet the only company with over 50% profit growth for 12 straight quarters; should you buy?

Just one company on the BSE has been posting a jump of over 50% in net profit in each quarter since March 2022. The company is NCR-based realty developer Anant Raj. It has recently made an aggressive foray into the data center infrastructure vertical.

After touching an all-time closing high of Rs 935 in January 2025, shares of the company traded at Rs 537 on March 21, 2025. Despite the recent correction, shares of the company have delivered nearly 10 times return to investors in past four years.

According to Ventura Securities, the residential, commercial, and data center infrastructure offerings provide the company with a healthy mix of realty sales and lease rental income.

“Anant Raj’s pristine land bank (of 220 acres in Gurugram and 101 acres in Delhi) provides for long-term revenue visibility,” Ventura Securities said in an earlier report.

For the latest quarter ended December 2024, Anant Raj posted nearly 54% growth in net profit at Rs 110.32 crore against 71.83 crore in the corresponding quarter a year ago. It posted somewhere between 57%-287% YoY increase in net profit in the preceding 11 quarters.

As per the latest regulatory filing, the company also approved the allotment of 1.37 million convertible warrants worth of Rs 100 crore to its promoter Shri Ashok Sarin Anant Raj LLP.

Of late, brokerage firm Motilal Oswal Financial Services in February gave a ‘Buy’ rating to Anant Raj with a target price of Rs 1,085.

“Anant Raj continues to make significant progress in reducing its debt. Its net debt ending Q3FY25 stood at Rs 54 crore against Rs 96 crore in Q2FY25. The 6MW IT load data center at Manesar is now operational, with an additional 15MW at Manesar and 7MW at Panchkula on track. This will bring the total capacity under development to 22MW IT load capacity by the end of FY25,” Motilal Oswal Financial Services said.

Amit Sarin, Managing Director, Anant Raj said, “The data center sector in India is witnessing rapid growth, driven by increasing digital adoption, cloud computing, AI advancements and data localisation, however, despite India accounting for 28% of global data generation, the country currently holds just 1% of the world’s data center capacity.”

“The demand for data center is much higher than current availability and future pipeline, we see the demand will continue to remain higher than supply for many years. This stark gap underscores the enormous opportunity for expansion and investment in the sector,” Sarin said.

ICRA expects India’s data centre (DC) operational capacity to increase to 2,000-2,100 MW by March 2027 from around 1,150 MW as of December 2024, involving investment of Rs 40,000-45,000 crore in FY26-27, supported by internet/data usage and data localisation initiatives.

Further, the rating agency added that established DC players and new players, which have entered this sector in the last 3-4 years, have a development pipeline of 3.0-3.5 GW to be delivered in the next 7-10 years, involving significant investments of Rs 2.0-2.3 lakh crore.