Nifty Realty slides over 2%, Godrej Properties, Oberoi Realty lead fall on profit booking

The Nifty Realty index of the National Stock Exchange slipped sharply by 2% in today’s choppy trading session, reflecting a similar sentiment seen in the benchmark indices. At the time of reporting, the realty index dipped by 17.15 points, or 1.88%, hovering at 896.20 on heavy profit booking.

Leading the fall was Godrej Properties, which declined by 2.94%, or ₹61.90, bringing its share price to ₹2041.80. Oberoi Realty was a close second, declining by 2.91% or ₹48.41, currently trading at ₹1617.60.

Even Bengaluru-headquartered Prestige Group and the Gurugram-based DLF too recorded steep declines of around 2.5%, with their share prices at ₹1562.80 and ₹740.60 respectively.

All the constituents in the Nifty Realty index were trading in the red, except Anant Raj Limited. Its share price was trading 3% higher, hitting an intraday high of ₹708. Currently it is trading at ₹682.75, which is still nearly 28% below its 52-week high of ₹ 947.90. Its 52-week low stood at ₹376.15, lower by 81% from its current share price.

As per news reports, the government is considering tax exemption for data centres for a period of 20 years. The incentive, if implemented, would be linked to targets for capacity addition, energy efficiency, and job creation, potentially providing a major boost to the sector.

The Ministry of Electronics and Information Technology (MeitY) is also likely to urge the Ministry of Finance to allow input tax credit (ITC) on the GST levied on capital assets. These include data centre construction, ventilation, heating, air conditioning equipment, and other electrical systems used in data centres. Anant Raj Limited would be a benefactor of this, as it already has operational data centres.

As per an Emkay Report, Anant Raj would expect operations to start over the next 3-4 months in its new data centre facilities in Panchkula (7MW capacity) and Manesar (21MW) with annualized occupancy at 70%, which would improve ahead.

 “Over the next two years, we expect DC capacity to increase to 63MW at a capex ₹19-20 billion, which would largely be met through cash flow generated from the real estate business. The management expects DC business revenue of ₹1200 crore by FY27 and ₹9000 crore by FY32, at full occupancy. We have factored in gradual improvement in occupancy and, hence, expect DC business revenue to increase to ₹700 crore in FY27E, from ₹45.5 crore in FY25. Overall, we expect 20% IRR for the DC business by FY45E,” the report said.