Shares of SignatureGlobal India Limited remained in focus of investors during trading on Thursday. The company’s shares jumped as much as 3% to ₹1,391.65, 261% higher than the 2023 IPO price of ₹385. Domestic brokerage firm MOFSL (Motilal Oswal Financial Services Limited) has taken a positive stance on this stock and has advised to buy it.
MOFSL has set a target price of ₹2,000 on the stock and estimates that the stock can give around 50% returns in 2025.
Brokerage Opinion: Strong Performance and Prospects
According to MOFSL, SignatureGlobal India began operations in 2014 and has since focused on affordable and middle-income housing.
- Sales and Growth:
- The company has sold 32,000+ units (approximately 25 million square feet) in the last decade.
- The compound annual growth rate (CAGR) of pre-sales in the financial year 2021-24 has been 63%.
- Premium Projects:
- The company has increased its presence in the premium segment.
- Volumes have recorded a CAGR of 13%, reflecting improvement in average realization.
- Focus on Margin:
- The company’s projects have an embedded operating margin of over 35%.
- However, reported margins need improvement.
Signature Global’s share performance
- Last 5 days: Share gained 5%.
- In a month: The stock registered a rise of 4%.
- Year-to-date performance: The stock showed a rise of 50%.
- Listing: SignatureGlobal India shares were listed in September 2023.
future prospects
MOFSL believes that the company is expected to witness further growth in pre-sales due to premium offerings and strong project pipeline. Additionally, the rapid project launches and increasing market demand may make SignatureGlobal India an attractive option for investors in the long term.
What to do for investors?
MOFSL recommends buying the stock with a target price of ₹2,000. This indicates that SignatureGlobal India shares have the potential for around 50% returns by 2025.
