Signature Global - Growth Gem In Making; Motilal Oswal Initiates Coverage With A Buy

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.We initiate coverage on SignatureGlobal India Ltd. with a Buy rating and a DCF-based target price of Rs 2,000, implying 38% upside potential..SignatureGlobal began its operations in 2014 and in just a decade, it has become one of the leading real estate developers in the Delhi NCR market. The company commenced its journey in the affordable and low/mid-income housing segment by leveraging the state government’s housing policies. Through its standardized offerings and quick turnaround strategy, SignatureGlobal has scaled up rapidly and delivered a 42% CAGR in pre-sales over FY21-23. Its agility in adapting to changing market preferences has enabled the company to foray into the premium segment, which doubled its pre-sales to Rs 73 billion in FY24. Its strong execution capabilities have enabled it to churn the capital and gear up with a strong ~30 million square feet project pipeline to be launched over the next two years. We, thus, expect the growth momentum to remain intact and expect SignatureGlobal to deliver 35% CAGR in pre-sales over FY24-27E to Rs 178 billion. The management’s disciplined land acquisition strategy has enabled it to curtail costs and report margins of over 35% (better than peers). .Key risks:High concentration in Gurugram,inability to replenish its project pipeline, andslowdown in demand..Click on the attachment to read the full report:.Oil Steady After Nearly 4% Drop Amid Growing Signs Of Oversupply.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Signature Global - Growth Gem In Making; Motilal Oswal Initiates Coverage With A Buy

At current valuations, the company trades at 5x implied EV/Ebitda on FY26E pre-sales, while peers are trading above 8-10x EV/Ebitda, further confirming the discounted valuation, says the brokerage.

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Signature Global - Growth Gem In Making; Motilal Oswal Initiates Coverage With A Buy

At current valuations, the company trades at 5x implied EV/Ebitda on FY26E pre-sales, while peers are trading above 8-10x EV/Ebitda, further confirming the discounted valuation, says the brokerage.

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