Signature Global shares rise 4% in trade; Axis Capital sees 43% more steam

Signature Global share price gained 3.7 per cent in trade on Thursday on BSE, logging an intraday high at ₹1,294 per share; check target

Signature Global share price gained 3.7 per cent in trade on Thursday on BSE, logging an intraday high at ₹1,294 per share. At 12:58 PM, Signature Global shares were up 1.31 per cent at ₹1,263.75 per share on the BSE. In comparison, the BSE Sensex was down 0.32 per cent at 83,272.06. The company's market capitalisation stood at ₹17,757.04 crore. 

 

The 52-week high of the stock was at ₹1,645.85 per share and 52-week low of the stock was at ₹1,010.95 per share.   Stock Market LIVE Updates: Sensex down 250pts, Nifty below 25,400

What should investors do with Signature Global stock? 

Axis Capital has initiated coverage on Signature Global with a 'Buy' rating, keeping the target at ₹1,780 per share. The brokerage sees a 42.7 per cent upside potential in the stock from the previous close at ₹1,247.35 per share. 

The brokerage is upbeat on the company for the following reasons: 

Strong pre-sales growth

Signature Global has delivered a 58 per cent compound annual growth rate (CAGR) in pre-sales from FY22–25, making it the fifth-largest listed real estate developer in India by pre-sales.

 

Analysts expect 19 per cent pre-sales CAGR from FY25–28E, reaching ₹17,500 crore.

Scalable pipeline and diversification to boost growth

The company has pivoted to units priced below ₹4 crore, which makes up 60 per cent of Gurugram’s housing demand—a segment it dominates with a 20 per cent market share.

 

The company also circled down on three micro-markets in Gurugram that are suitable for this housing segment and contributes 70 per cent of the market’s demand. It has 25 mn sq ft of forthcoming projects in these strategic locations. Signature Global also aims to diversify beyond Gurugram and is looking for growth potential in Delhi/Noida.

Surge expected in cash flows

While collections have lagged behind pre-sales, according to brokerage, they are expected to ramp up significantly as project execution accelerates.

 

The company is projected to deliver 38 per cent CAGR in collections and operating cash flow (OCF) with healthy post-tax OCF margins of 37 per cent, driven by low land costs.

About Signature Global

The company began operations in 2014 with affordable housing under the state government’s AHP scheme and ventured into mid-income housing in 2017 under the DDJAY scheme. Till March 20, it launched 40 projects across Gurugram, Karnal, and Sohna, with a total saleable area of 23 mn sq ft. In FY24, it ventured into premium housing and successfully launched two projects.