ICICI Securities has maintained a ‘BUY’ rating on SignatureGlobal with an upgraded target price of INR 2,058, implying a 59% upside from the current market price of INR 1,291. The valuation is based on a 9x embedded EBITDA multiple, which still leaves room for further re-rating as the company scales up operations.
SignatureGlobal India has emerged as a dominant force in the real estate market, particularly in the Delhi NCR region. Since its successful IPO in September 2023, where it raised approximately INR 730 crore, the stock has delivered phenomenal returns, cementing its status as a true multibagger. This high-growth real estate stock continues to attract investor attention due to its aggressive expansion and strong financial performance.
Exceptional Growth in Sales and Profitability
SignatureGlobal has demonstrated an extraordinary growth trajectory in recent years. The company has achieved an impressive 63% CAGR in sales bookings from FY21 to FY24, primarily driven by its affordable and mid-income housing projects. In the first nine months of FY25 alone, it has already achieved sales bookings worth INR 87,000 crore, putting it well on track to surpass its full-year guidance of INR 100,000 crore. The upcoming launches in Q4FY25, worth INR 25,000 crore, further bolster its sales momentum.
Financially, the company is set for a major leap. From a net revenue of INR 12,400 crore in FY24, it is projected to reach INR 36,900 crore in FY25 and further climb to INR 65,000 crore by FY27. EBITDA, which was in the negative in FY24, is expected to surge to INR 6,000 crore in FY25 and nearly INR 15,000 crore by FY27, reflecting a steady improvement in operational efficiency and margin expansion.
Strong Pipeline and Expansion Plans
SignatureGlobal boasts a strong project pipeline with a cumulative Gross Development Value (GDV) exceeding INR 350,000 crore over FY25-FY28. The company currently has a saleable area of 46.3 million sq. ft across its ongoing and forthcoming projects, with Gurugram being its stronghold. However, management has hinted at a potential expansion into the New Delhi market, which could open up substantial new growth avenues. This makes SignatureGlobal one of the top real estate investment opportunities in India today.
Valuation and Massive Upside Potential
Despite its stellar growth, SignatureGlobal remains attractively valued compared to its peers. The stock is currently trading at a P/E of 40.7x FY25E earnings, which drops significantly to 17.7x by FY27E, reflecting its strong earnings growth potential. The company’s Return on Equity (RoE) is set to jump from 4.8% in FY24 to a whopping 52.5% in FY25, underscoring its improving financial strength. Investors looking for a high-growth real estate stock with strong fundamentals should keep an eye on SignatureGlobal.
Conclusion: A Winning Bet for Investors
SignatureGlobal’s combination of rapid sales growth, expanding margins, and strategic expansion plans makes it one of the most compelling investment opportunities in the real estate sector. Its ability to execute projects efficiently and reinvest in growth ensures a sustained upward trajectory. For investors seeking high-growth opportunities in the real estate space, SignatureGlobal presents a multibagger story that is still unfolding.