Anant Raj Industries - Mid Cap Real Estate Stock To Buy

Angel Broking recommends `Buy Stocks` on Anant Raj Industries with a price target of Rs 189 as against the current market price (CMP).

The broking house said Anant Raj Industries (ARIL) is a prominent and ell-diversified Real Estate player in the NCR region.

They expect ARIL`s two super premium Residential projects of Hauz Khas and bhagwandas, located in the heart of Delhi, to drive its near-term operational visibility and help register Rs 6 billion Profit over the next three years.

Further, ARIL has 70% and 30% pre-lease commitments at its Manesar IT Park and Kirti Nagar mall respectively, coupled with five hotels getting operational by FY 2011E wihich will improve rental visibility.

At Rs139, the stock is trading at 37% discount to our 1-year forward NAV, 11.4x FY2011E EPS and 1.1x FY2011E P/BV.

Market Cap: 3,769.86
* EPS (TTM): 7.75
* P/E: 16.48
* P/C: 15.89
* Book Value: 109.74
* Price/Book: 1.16
Div(%): 30.00
Div Yield(%): 0.47
Market Lot: 1.00
Face Value: 2.00
Industry P/E: 28.74

The stock broking house has initiated coverage on the stock with a `Buy Stocks` recommendation for medium term investment (~ one Year) with target price of Rs 189, which is at 15% discount to our 1-year forward NAV.

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