Axis Securities has recommended a BUY on Signature Global (India) Ltd. (SIGNATURE) stock with a target price of ₹1,645 per share, implying a 29% 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.
Signature Global’s Growth Blueprint
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.
Financial Performance & Projections
Signature Global’s revenue is expected to grow from ₹1,241 crore in FY24 to ₹7,197 crore in FY27, reflecting a robust CAGR of 80%. Presales are forecasted to rise at a strong pace of around 36% CAGR from FY25 to FY27, with bookings reaching ₹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% in FY24 to 27% in FY27. Net profit is projected to increase substantially, from ₹16 crore in FY24 to ₹1,654 crore in FY27. Operating cash flow is expected to rise from ₹621 crore in FY25 to ₹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% 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%.
