200% returns since listing! Analysts see a further 50% upside in this real estate firm post Q2 results

Brokerages retained their bullish view on Signature Global [Signatureglobal (India)] after it posted a consolidated profit of Rs 4.11 crore in Q2FY25, against a loss of Rs 19.94 crore in the corresponding quarter last year. Its gross sales jumped a whopping 660% YoY to Rs 749.29 crore during the quarter under review. A deferred tax credit of Rs 29 crore supported the bottom line in Q2FY25.

Motilal Oswal Financial Service set a target price of Rs 2,000 for Signature Global, indicating an upside of more than 50% against the current market price of Rs 1,306. The brokerage added that management reiterated its FY25 guidance of Rs 10,000 crore in pre-sales and Rs 6000 crore in collections.

“It is confident of recognising revenue of Rs 3,800 crore in FY25 and Rs 7,000 crore in FY26, as 16msf is expected to be delivered over FY25-26, which has a potential GDV (gross development value) of Rs 11,000 crore. Additionally, it is confident of achieving a blended embedded operating margin of 35% for the projects,” Motilal Oswal Financial Services said in a report. For FY25, gross debt is expected to come down to Rs 500-600 crore from Rs 1000 crore at present.
Shares of the company, which listed on bourses on September 27, 2023, have advanced more than 226% against their issue price of Rs 385.

ICICI Securities revised its target price upward to Rs 2,007 from Rs 1,905 earlier. The brokerage in a report on November 12 said that Signature Global had delivered 63% sales booking CAGR over FY21-24, largely via affordable or mid-income housing projects. It has now achieved H1FY25 sales bookings of Rs 5,900 crore driven by the launch of its Titanium project in Sector 71, Gurugram and Daxin Vistas project in Sohna, Gurugram.

“Given its strong launch pipeline of projects with cumulative GDV of over Rs 45,000 crore during FY24-28, we estimate 21% sales booking CAGR over FY24-27E, ranging between Rs 11,000-13,000 crore annually over FY25-27. Factoring in strong H1FY25 result, we raise FY25/26E sales bookings by 7% each to Rs 10,800 crore and Rs 11,400 crore, respectively,” ICICI Securities said in a report.