Brokerage firm Nuvama has issued a “Buy” recommendation for Signature Global (India) Ltd, with a target price of ₹1,436, indicating a 35% upside from the current trading price of ₹1,062.95.
Strong Position in NCR & Shift to Premium Housing
Signature Global has quickly emerged as a leading real estate player in the NCR region, initially focusing on affordable housing. Following the pandemic, the company made a successful pivot to premium residential projects, resulting in a 7.6x increase in sales bookings between FY21 and 9MFY25.
Backed by strong cash flows and low working capital, Signature Global is expected to become net cash positive by FY27. A robust real estate market and premium positioning are likely to support 21% CAGR in pre-sales over FY25–27E.
Strategic Land Holdings & Profit Margins
The company owns over 21 million sq. ft. of land, with potential sales exceeding ₹350 billion. Key locations include Southern Peripheral Road, Dwarka Expressway, and Sohna. Low land acquisition costs (10–15% of pre-sales) help maintain operating margins around 35–40%.
Financial Strength & Market Advantage
Signature Global benefits from strong brand trust, quick project sell-outs, minimal capital investment per unit, and low debt levels. Efficient collections and disciplined expansion are helping boost free cash flow and ensure financial resilience.
Outlook
With continued profitability and growing collections, Nuvama expects Signature Global to reach net-cash status by FY27, signaling long-term value for investors.
