Axis Securities Recommends Buy on Signature Global (India)
Real Estate

Axis Securities Recommends Buy on Signature Global (India)

Axis Securities has recommended a Buy on Signature Global (India) (SIGNATURE) stock with a target price of Rs 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.

As Signature Global shifted from affordable to mid-income and then premium housing, demand grew quickly, resulting in a low inventory overhang for that segment. The company noticed this change in trends and shifted its focus to homes priced between Rs 2 crore and Rs 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.

Signature Global’s revenue is expected to grow from Rs 12.41 billion in FY24 to Rs 71.97 billion 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 Rs 181.29 billion, 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 Rs 16 crore in FY24 to Rs 16.54 billion in FY27. Operating cash flow is expected to rise from Rs 6.21 crore in FY25 to Rs 27.08 billion in FY27. By FY27E, the company is expected to report negative net debt, signaling strong financial health.

Axis Securities has recommended a Buy on Signature Global (India) (SIGNATURE) stock with a target price of Rs 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. As Signature Global shifted from affordable to mid-income and then premium housing, demand grew quickly, resulting in a low inventory overhang for that segment. The company noticed this change in trends and shifted its focus to homes priced between Rs 2 crore and Rs 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. Signature Global’s revenue is expected to grow from Rs 12.41 billion in FY24 to Rs 71.97 billion 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 Rs 181.29 billion, 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 Rs 16 crore in FY24 to Rs 16.54 billion in FY27. Operating cash flow is expected to rise from Rs 6.21 crore in FY25 to Rs 27.08 billion in FY27. By FY27E, the company is expected to report negative net debt, signaling strong financial health.

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