ICICI Securities Maintains Buy Rating for Signature Global India Stock

Mumbai / September 4, 2023: ICICI Securities maintains a BUY rating on Signature Global India (Signature) with a revised target price of Rs 1,905 (up from Rs 1,707). This implies a potential upside of 35%. The company has successfully transitioned from affordable/mid-income housing to mid-income and premium housing. Their first premium residential project in Gurugram was a success, with over Rs 36 billion in sales bookings.

Signature Global has a strong launch pipeline of projects with a cumulative GDV (Gross Development Value) of over Rs 450 billion over FY24-28E. This is expected to drive a 19% CAGR (Compound Annual Growth Rate) in sales bookings over FY24E-27E. ICICI Securities values the company at 10x FY24E-26E average embedded EBITDA, considering its focus on reinvesting internal accruals for land bank replenishment. This is a discount to its closest peer, DLF, which has the advantage of historically low-cost land in Gurugram.

There are some key risks to consider, such as a slowdown in the Gurugram market and the company’s ability to replenish its land bank.

Overall, ICICI Securities believes Signature Global India is a compelling investment opportunity due to its successful transition to premium housing, strong launch pipeline, and focus on growth.