Leading brokerage firm Nuvama has issued a buy recommendation for Signature Global (India) Ltd, setting a target price of ₹1,436—a potential 35% upside from the current market price of ₹1,062.95 per share (as of market close on March 17, 2025).
Market Leadership & Growth Momentum
In just a decade, Signature Global has become a dominant player in the NCR real estate market, initially gaining recognition in affordable housing and later successfully transitioning into premium housing post-COVID. This shift has fueled a 7.6x growth in sales bookings between FY21 and 9MFY25.
With strong cash flows and low working capital requirements, the company is well-positioned to achieve a net-cash status in the coming years. The ongoing real estate upcycle and its strategic move towards premium housing are expected to drive a 21% CAGR in pre-sales from FY25 to FY27E.
Expanding Land Bank & Strong Profitability
Signature Global has amassed a land bank exceeding 21 million sq. ft., with an estimated sales potential of over ₹350 billion. The company has strategically acquired land in high-demand micro-markets like Southern Peripheral Road (SPR), Dwarka Expressway, and Sohna.
By keeping land acquisition costs low (10–15% of pre-sales value), the company ensures a healthy cash operating margin of 35%, with the potential to reach 40% in the future.
Competitive Edge & Financial Stability
The Gurugram real estate market is witnessing strong demand, with trusted developers like Signature Global seeing rapid project sales due to limited supply and high customer preference. This allows the company to maintain minimal working capital requirements and a low capital investment per unit of pre-sales.
With strong collections and efficient operations, Signature Global continues to expand its land holdings while keeping debt levels low.
Future Outlook: Achieving Net-Cash Status by FY27E
With rising cash collections and improving profitability, Signature Global is expected to generate increasing free cash flow, leading to a net-cash status by FY27E. This financial strength reinforces its long-term growth potential and market leadership in the premium housing segment.
For a detailed financial outlook and Nuvama’s analysis, you can access the full research report here:
Download the Nuvama Institutional Equities Report on Signature Global
