News
Axis Securities Recommends BUY on Signature Global (India) Ltd. Stock with Target Price of ₹1,645


New Delhi, February 5, 2025: Axis Securities has recommended BUY on Signature Global (India) Ltd. (SIGNATURE) stock with a target price of INR 1,645 per share, implying a 29 per cent upside from the current market price (CMP). Signature Global is a leading real estate development company in the Delhi/NCR region focused on affordable and mid-segment housing.
Business Strategy & Growth Outlook
As Signature Global shifted from affordable to mid-income and then premium housing, demand grew quickly, leaving very few unsold homes in that segment. The company noticed this change in trends and shifted its focus to homes priced between INR 2 crore and INR 6 crore. There are only a few well-known brands in this segment, and over the past decade, Signature Global has proven its ability to dominate this market.
Signature plans to tap into Gurugram’s urban growth by developing projects in emerging micro-markets. Most of its upcoming projects are in Sector 71, Sector 37D, and the Sohna/Manesar Corridor. These growing areas have strategic benefits, better future connectivity, and are likely to see higher property values. Signature is taking advantage of Gurugram’s demand for mid-income and premium housing by establishing itself in North India’s trade and IT hubs.
Financial Performance & Projections
Signature Global’s revenue is expected to grow from INR 1,241 crore in FY24 to INR 7,197 crore in FY27, reflecting a robust CAGR of 80 per cent. Presales are forecasted to rise at a strong pace of around 36 per cent CAGR from FY25 to FY27, with bookings reaching INR 18,129 crore, driven by the upcoming launch of approximately 25 million sq. ft. The company’s EBITDA margin is anticipated to improve significantly, from -2.1 per cent in FY24 to 27 per cent in FY27. Net profit is projected to increase substantially, from INR 16 crore in FY24 to INR 1,654 crore in FY27. Operating cash flow is expected to rise from INR 621 crore in FY25 to INR 2,708 crore in FY27. By FY27E, the company is expected to report negative net debt, signaling strong financial health.
Competitive Strengths & Execution Capability
The company boasts a quick turnaround time, with land-to-launch taking just 18 months, faster than the industry standard. It holds a 27 per cent market share in Gurugram’s micro-markets, reinforcing its market leadership. Additionally, its strategic land acquisition focuses on locations with high infrastructure growth and connectivity.
Conclusion
Signature Global is well-positioned to benefit from Gurugram’s housing demand, thanks to strong sales momentum, margin improvements, and efficient execution. With a solid financial outlook and strategic expansion plans, the company offers a compelling investment opportunity, with a potential upside of 29 per cent.
-
News1 week ago
Rachana Construction Develops 25 MW Solar Plant Project at Dharashiv, Maharashtra
-
News4 weeks ago
Prateek Group launches Prateek Grand Begonia in Siddharth Vihar, Ghaziabad
-
News4 weeks ago
NEOS TeleStar Breaks Records: 50 Units Sold in Just 48 Hours
-
News1 week ago
Budget 2025: Real Estate Sector Counts on Tax Reforms, Easier Funding
-
News5 days ago
Budget 2025-26 Set to Energise Urban Development Even as it Boosts Disposable Incomes
-
News2 weeks ago
NCR’s Commercial Rental Market Emerges as Hotspot for Investors
-
News1 week ago
Property Prices Rose Sharply in Prime Residential Markets in 2024
-
News1 week ago
NAREDCO Maharashtra, IFC Team Up for Sustainable Real Estate Development