Nomura cuts target price of this AI, data centre beneficiary company. Here’s why

Nomura has cut its target price for Anant Raj, reducing its FY27 and FY28 earnings estimates by 8% and 10% respectively, citing slower-than-expected ramp-up in cloud capacity and delays in residential project launches. The brokerage moderated its annual cloud capacity addition assumption to 3MW from 4MW earlier, and now expects cloud to account for 10-11% of the business mix versus its earlier 13-14%. Despite the cuts, Nomura sees improvement from Q2FY27 as rentals from the new 1.5MW cloud capacity begin, and the company remains on track to expand data centre IT capacity to 63MW by end of FY27 from 28MW currently.