As Motilal Oswal begins covering with a "buy" call, Anant Raj shares increase 4%, seeing a 31% increase.

With investments in data centers and cloud services, Anant Raj is shifting from its real estate dominance to a more diverse economic strategy.

Investor wealth has tripled as a result of Anant Raj shares' 200 percent 12-month surge over the last 12 months.

After domestic brokerage Motilal Oswal began covering the company, shares of real estate developer Anant Raj Ltd. increased 4% in morning trading on December 20.

A 'buy' tag was placed on the company by Motilal Oswal, who set a price target of Rs 1,000 per share, suggesting a potential upside of almost 31% from the closing price of the previous session.

On the NSE, shares of Anant Raj were trading at Rs 866.45 a share at 10 am, up 3.44 percent.

According to the brokerage, Anant Raj is shifting from its real estate dominance to a more diverse business strategy that includes calculated investments in cloud services and data centers (DCs). This change takes advantage of India's growing trends in digital transformation and data localization.

With strong real estate sales and increasing rental revenue from its DC and cloud activities, Anant Raj is also in a strong position. "With a planned capacity of 300MW for DC over the next 4-5 years, the company is leveraging its existing technology parks to enhance execution speed and cost efficiency," said Motilal Oswal.

With cloud capacity expected to increase to 25% by FY32, Anant Raj's entry into higher-margin cloud services (IaaS) in collaboration with Orange increases its potential for profitability.

The company's expansion is supported by robust pre-sales, collections, and operating cash flows. The brokerage anticipates a large increase in revenue and EBITDA margin, which will drive long-term value creation, even though execution concerns still exist.

Investor wealth has tripled as a result of Anant Raj shares' 200 percent 12-month surge over the last 12 months. However, throughout the same time frame, the leading index Nifty 50 increased by about 13 percent.