Brokerage Firms Bullish on Signature Global; Issue ‘BUY’ Rating with Target Price of ₹2,000

Nov 15, 2024: Leading Brokerage firms seem to be bullish on Signature Global (India). Post their (Signature Global) Q2FY25 result announcement, ICICI Securities and Motilal Oswal have given a BUY call on Signature Global stock. 

While ICICI Securities has maintained BUY call, with the target price of ₹2,007, Motilal Oswal has given a target price of ₹2,000 per share.

The shares of the company were trading at 1298.05 a piece up 3.41% at the closing hour of November 14, 2024, Thursday. The total market cap stands at 18,238.99 crore.

Brokerage Firm Recommendations

Motilal Oswal has kept its BUY rating with a target price of ₹2,000 per share, indicating a 56% upside potential. The brokerage noted Signature Global’s strong performance, with pre-sales of ₹27.8 billion in Q2 FY25—up 183% year-on-year—boosted by the recent launches of Titanium SPR (group housing) and Daxin Vistas (township project) in the first half of FY25.

Similarly, ICICI securities have retained its BUY rating with revised target price of Rs 2,007.

The brokerage firm noted that the developer achieved a 63% sales booking CAGR from FY21 to FY24, primarily through affordable and mid-income housing projects. In H1 FY25, the developer recorded sales bookings of ₹59 billion, driven by the launch of the Titanium project in Sector 71, Gurugram, and the Daxin Vistas project in Sohna, Gurugram.

 “Given its strong launch pipeline of projects with cumulative GDV of over INR 450bn during FY24-28, we estimate 21% sales booking CAGR over FY24-27E, ranging between INR 110-130bn annually over FY25-27E. Factoring in strong H1FY25 result, we raise FY25/26E sales bookings by 7% each to INR 108bn and INR 114bn, respectively,” it added.

 Surge in Q2 profit

Signature Global Ltd reported a consolidated net profit of Rs 4.15 crore for the quarter ended September, up from net loss of Rs 19.92 crore in the same period last year. The total income rose to Rs 777.42 crore from Rs 121.16 crore in the September quarter of last year.

In its earning press release of Q2 FY25 Signature Global (India) Chairman Pradeep Aggarwal said, “The real estate market in the Delhi NCR region, particularly in Gurugram, continues to exhibit solid fundamentals, supported by resilient end-user demand, positive market sentiment, and significant infrastructure development. The strong response to our recent launches in Gurugram underscores the rising demand for quality homes within thoughtfully planned communities. Looking ahead, we remain focused on enhancing operational efficiency, strengthening our financial foundation, and delivering sustained value for all stakeholders. With Gurugram’s expanding infrastructure and ongoing urbanization across the NCR, we see promising opportunities for established developers to meet evolving housing needs while maintaining a disciplined financial approach”.