Shares of SignatureGlobal is in focus following Axis Securities’ initiation of coverage with a ‘Buy’ recommendation, setting a price target of ₹ 1,780 per share, which suggests a 42% upside potential from the current price of ₹ 1,258.
The brokerage notes that the firm is among the top developers in the NCR region. In just ten years since its establishment, SignatureGlobal has positioned itself as the fifth-largest publicly listed real estate company, achieving a 58% compound annual growth rate (CAGR) in pre-sales from FY22 to FY25, due to its varied segment mix and micro-market presence.
The company has 25 million square feet of upcoming projects across its three primary markets, and the brokerage anticipates a 19% CAGR in pre-sales from FY25 to FY28.
SignatureGlobal’s strategy to expand its presence in Delhi/Noida further improves its growth outlook.
Expanding beyond Gurugram and increasing collections through progress in execution are expected to prompt a re-rating of the stock.
Valuation and view
As noted by the brokerage, SignatureGlobal has established a solid reputation in affordable and mid-income housing, excelling in both sales and implementation. With their deep knowledge of the Gurugram market, management has successfully pinpointed several appealing locations that are becoming centers for future commercial and infrastructural growth.
Their strategic timing and efforts in securing these deals have kept land costs relatively low, accounting for about 10-15% of the potential revenue. The company’s venture into premium group housing has so far proven effective, given the impressive sales momentum it has achieved. The only aspect that remains to be demonstrated is its capacity for execution, for which we believe it has taken appropriate measures, such as contracting Grade-A builders for construction, and the brokerage expects positive outcomes.
“We see the concentration risk as a bit overplayed. SignatureGlobal is yet to peak out in Gurugram and is likely to be a serious contender for gaining market share in Delhi,” said the brokerage.
SignatureGlobal share price today
SignatureGlobal share price today opened at an intraday high of ₹1,280 apiece on the BSE, the stock touched an intraday low of ₹1,252.70 per share. In the past week the stock rose 0.70%. Stock has been up 15.66% in the past quarter and fell 16.83% in the past year.