Multibagger Signatureglobal Hits Record High After Pre-Sales Jumps 255% In Q1

Shares of Signatureglobal (India) Ltd. hit a record high on Monday after its pre-sales jumped more than threefold and collections doubled in the first quarter of fiscal 2024.

The real estate developers' pre-sales surged 255% year-on-year to Rs 3,120 crore in the quarter ended June 30, 2024, according to an exchange filing. Collections rose 102% to Rs 1,210 crore, its best ever collection since inception.

The company has already achieved over 30% sales on the guidance of Rs 10,000 crore for fiscal 2025. A large proportion of the sales came from the successful launch of a large group housing project in Gurugram during the first quarter of fiscal 2025, which also drove up average sales realisation for the quarter.

The average sales realisation increased significantly from Rs 11,762 per square feet in the last fiscal to Rs 15,369 per square feet in the April to June quarter of fiscal 2025. It is expected that this will return to a lower level with the upcoming launches in the mid-income home market this year.

The company's net debt narrowed to Rs 980 crore as of June 30, 2024, from Rs 1,160 crore as of March 31, 2024, the filing said.

Shares of Signatureglobal rose as much as 4.04% to Rs 1,559.80 apiece on the NSE. It was trading 1.78% higher at Rs 1,525.90 apiece, compared to a 0.10% decline in the benchmark NSE Nifty 50 as of 10:17 a.m.

The stock has risen 232.84% in the last 12 months and 73.98% on a year-to-date basis. The total traded volume so far in the day stood at 4.1 times its 30-day average. The relative strength index was at 75.67 indicating that the stock is overbought.

Both the analysts tracking Signatureglobal have a 'buy' call on the stock according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 1%.