India’s real estate sector is booming, with residential and commercial projects driving significant growth. The commercial real estate market is projected to grow from USD 40.71 billion in 2024 to USD 106.05 billion by 2029, while residential property demand surges due to urbanization and rising incomes, making India a key player in global real estate markets.
With a market capitalization of Rs 18,289.57 crore, the shares of Signatureglobal (India) Ltd were trading at Rs 1,301.65 per share, increasing around 1.54 percent as compared to the previous closing price of Rs 1,281.95 apiece.
Brokerage Recommendations:-
Kotak Institutional Equities, one of the well-known brokerages in India, upgraded and gave a ‘Buy’ call on the real estate stock with a target price of Rs 1,570 apiece, indicating a potential upside of 21 percent from Tuesday’s closing price of Rs 1,302 per share.
Target Rational:-
As per the brokerage, the company is on track to achieve its guidance with new project launches planned for Gurgaon and Manesar in the second half of FY25. additionally, brokrage also highlighted the company’s impressive pre-sales growth, reporting a 217 percent year-on-year increase to Rs 5,900 crore in the first half of FY2025, with pre-sales for the full year expected to reach Rs 10,000 crore.
Recently, Signatureglobal (India) Ltd has launched a mid-income housing project,’ Daxin’, in Sohna added Rs 2,300 crore to pre-sales in Q2FY25.
However, collections trailed, with the company’s H1FY25 collections at Rs 2,130 crore, less than the FY25 aim of Rs 6,000 crore. Management anticipates collections to increase in H1FY25, supported by recent pre-sales; it is confident in meeting the Rs 60 billion (or Rs 6,000 crore) FY25 forecast.
Financial condition & Guidance:-
Analyzing the company’s financial performance, revenue zoomed by 664 percent from Rs 98.53 crore in Q2FY24 to Rs 749.29 crore in Q2FY25 but during the same time, net profit zoomed by 120 percent from Rs 19.93 crore loss to Rs 4.16 crore profit.
The company is confident in achieving FY25 sales of ₹10,000 crores and launch sales of ₹16,000 crores. It expects EBITDA margins of 20%-25% on revenue recognition for the upcoming year, with embedded EBITDA margins of around 35% on current sales.
Future outlook:-
The company plans to maintain its focus on offering the right products at competitive prices, capitalizing on real estate demand. Its long-term strategy includes cautious expansion into new NCR markets, ensuring that new projects align with operational capabilities and market demand.
Company Snapshot:-
Signatureglobal (India) Limited is an Indian-based holding company. The Company and its subsidiaries operate in real estate development. It also distributes building materials and offers construction services through construction contracts.
Written by:- Abhishek Singh
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