Target: ₹225

CMP: ₹170.35

TARC Ltd, formerly Anant Raj Global Ltd, is a real estate developer with core focus on development of luxury high rise buildings in Delhi. The company has transformed from a construction player to a large real estate developer holding over 500 acres of fully paid-up land in New Delhi, Gurugram, Manesar and Greater Noida.

TARC is currently engaged in construction of 3 projects: Tripundra, Kailasa and Ishva. Besides these, additional projects have been planned in Delhi and Gurugram which is anticipated for launch in FY25. These ventures are projected to contribute approximately ₹7,500 crores in revenue, commencing from FY25.

Bain Capital infused ₹1,330 crore of NCDs into their capital mix in FY 2022. This helped them to pay off all legacy financial dues and finance ongoing projects. They plan to pay off this NCD through internal accruals.

We have assessed the stock’s value at a target price of ₹225, this valuation is based on a NAV of ₹6,600 crore discounted by a weighted average cost of capital (WACC) of 13 per cent. Our optimism towards the stock stems from its strong potential for revenue growth, driven by the progress of three ongoing projects and the anticipation of three additional launchesin the upcoming years.