The shares of a Realty company, which focuses on providing quality homes to the growing middle-class segment in India, are in focus due to plans of investing Rs. 4,000 crores as part of their expansion plan.
Price action
With a market capitalization of Rs. 15,128.08 crores on Monday, the shares of Signatureglobal (India) Ltd jumped upto 0.7 making a high of Rs. 1089.50 per share compared to its previous closing price of Rs. 1081.70 per share.
What Happened
Signatureglobal (India) Ltd, engaged in providing quality homes to the growing middle-class segment in India, as per sources, it has plans of investing around Rs. 4,000 crore to develop two new housing projects, including land, construction, and other costs in Gurugram as part of its expansion plan.
The company’s Chairman, Pradeep Kumar Aggarwal, mentioned that they will focus on the Rs. 2-5 crore price range, as there is strong demand but limited supply in this segment. He furthermore, mentioned that demand for residential properties, especially from well-established companies, remains strong. However, the rapid growth seen in recent years has slowed down.
The company plans to launch over 40 lakh square feet of premium housing in Gurugram by the next quarter. From April to December this fiscal year, Signature Global sold properties worth Rs 8,670 crore, a significant increase from Rs 3,120 crore last year.
Additionally, the company reduced its net debt to Rs 740 crore from Rs 1,020 crore in the previous quarter. The average pre-sales price increased to Rs 12,565 per square foot, compared to Rs 11,762 per square foot last year. Signature Global aims for Rs 10,000 crore in sales bookings this fiscal year, up from Rs 7,270 crore last year, and has a strong pipeline of 350 lakh square feet in upcoming projects.
About the Company
Signatureglobal (India) Ltd is a leading real estate developer in India, specializing in affordable housing projects. The company focuses on creating quality homes that cater to the growing middle-class segment. With a strong presence in key cities, Signatureglobal aims to make homeownership accessible through innovative, sustainable, and well-planned developments.
Guidance
The FY25 guidance shows strong growth, with pre-sales expected to rise to Rs. 100 billion from Rs. 72.7 billion in FY24. Embedded EBITDA is projected to increase to Rs. 35 billion, and Embedded PAT is forecasted to reach Rs. 24.5 billion, reflecting a significant improvement in margins, and the finance costs are expected to decrease slightly, and taxes will rise with higher profits.
Financials
The company’s revenue rose by 185 percent from Rs. 301.76 crore to Rs. 862.15 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 2.13 crores to Rs. 29.12 crore during the same period
Written by Sridhar J
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