India’s data centre industry is set for a major transformation, driven by rapid digitalization and rising demand for data storage. The market is projected to reach $5 billion by the end of 2024, with significant capacity growth expected from domestic and international investments.
This expansion offers opportunities for small-cap stocks to capitalise on the growing market. As more companies adopt cloud services and AI, the demand for advanced data centre infrastructure will continue to rise, presenting attractive investment prospects.
Here are few small-cap stocks that can benefit from Data Centre Boom in India:
With a market capitalization of Rs.23,604 crore, the share price of Anant Raj Ltd closed at Rs.670.00 per share on Friday, falling 3 percent from its previous close.
The real estate company is capitalising on the growing demand for data centres, leveraging its early-mover advantage with lower capex due to land ownership and existing infrastructure.
The company is converting 5.66 million square feet of commercial property into a 157 MW data centre, expecting Rs.3,300 crore in rentals once fully operational, and is investing Rs.10,000 crore to build a 300 MW facility.
In Q1FY25, the company reported a 50 percent year-on-year increase in revenue to Rs.472 crore and a 82 percent rise in net profit to Rs.91 crore.
Schneider Electric Infrastructure Ltd
With a market capitalization of Rs.18,145 crore, the share price of Schneider Electric Infrastructure Ltd closed at Rs.731.00 per share on Friday, falling 3 percent from its previous close.
Schneider Electric has opened a new manufacturing facility in Bangalore, India, with a Rs.100 crore investment. Spanning 6.5 acres, the plant will produce cooling solutions for data centres, telecom, and industrial applications, with 85 percent of products intended for export.
To meet growing global and domestic demand, Schneider plans to invest Rs.3,200 crore by 2026, enhancing its manufacturing capabilities and supporting the global data center market from India.
In Q1FY25, the company reported a 20 percent year-on-year increase in revenue to Rs.593 crore and a 37 percent rise in net profit to Rs.48 crore.
Techno Electric & Engineering Company Ltd
With a market capitalization of Rs.17,954 crore, the share price of Techno Electric & Engineering Company Ltd closed at Rs.1,470.00 per share on Friday, falling 4.5 percent from its previous close.
The engineering company is venturing into the data centre development sector as an operator, planning to invest $1 billion to establish data centres with a total capacity of 250 MW across India by 2030.
Currently, it is constructing a 24 MW facility in Chennai. Additionally, the company can leverage its expertise in engineering, procurement, and construction to act as an EPC partner for other firms developing data centres in India.
In Q1FY25, the company reported a 37 percent year-on-year increase in revenue to Rs.375 crore and a staggering 292 percent rise in net profit to Rs.98 crore.
With a market capitalization of Rs.15,586 crore, the share price of Kirloskar Oil Engines Ltd closed at Rs.1,020.00 per share on Friday, falling 5 percent from its previous close.
Data centres need an uninterrupted power supply to operate effectively. The company produces diesel generators that serve as backup power sources during grid outages or fluctuations.
Additionally, it has strategically developed its product line, with the OptiPrime series of generators specifically designed for data centres.
In Q1FY25, the company reported a 6 percent year-on-year increase in revenue to Rs.1,636 crore and a 23 percent rise in net profit to Rs.156 crore.
Written by – Siddesh S Raskar
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