Domestic brokerage firm ICICI Securities has increased its target price on SignatureGlobal India Ltd. The domestic brokerage firm believes that the multibagger real estate player has more steam as the compounding story remains intact but its foray into new markets is a key monitorable.
SignatureGlobal has successfully transitioned into mid-income/premium segment with new launches in premium segment at Sector 37 and Sector 71 (in Gurugram) between January to June 2024 having seen strong offtake, said ICICI Securities, which expects the share of mid-income housing projects to range between 65-70 per cent at realisation in excess of Rs 10,000 per sq.ft.
"Given its strong launch pipeline with projects having a cumulative GDV of more than Rs 45,000 crore over FY24-28E, we estimate Signature may clock 19 per cent sales booking CAGR over FY24E-27E with sales booking ranging between Rs 10,0-12,000 crore annually over FY25E-27E," it said.
Shares of Signatureglobal (India) rose more than 2 per cent during the trading session Wednesday to Rs 1,439.85, commanding a total market capitalization of more than Rs 20,000 crore. The stock had settled at Rs 1,409.95 in the previous trading session on Tuesday.
"With the company having firmly established its presence across Gurugram, the next level of growth may come from Noida, NCR where it may look to augment its land bank through outright purchase/JDA route," said ICICI Securities. "We retain 'buy' on SignatureGlobal India with a revised target price Rs 1,905 (earlier INR 1,707), valuing the company at 10 times FY24-26E," it added.
Shares of Singatureglobal (India) were listed at the bourses in late September 2023, when the company raised a total of Rs 730 crore via its IPO, selling its shares for Rs 385 apiece. The stock has rallied about 275 per cent from its IPO price so far.
Signature Global reported a consolidated net profit of Rs 6.76 crore for the quarter ended June on higher income. The company had posted a net loss of Rs 7.22 crore in the year-ago period. Realty firm's total income rose 140 per cent on a yearly basis to Rs 427.98 crore in April-June 2024 period. The company projects sales of Rs 10,000 crore in this fiscal.
Recently, domestic brokerage firm Motilal Oswal Financial Services has initiated coverage on the stock, citing it as a gem in making, with a target price of Rs 2,000 and a 'buy' rating on the stock. It expects SignatureGlobal to deliver 35 per cent CAGR in bookings over FY24-27E as the growth momentum remains intact.