Nuvama recommends Signature Global for 34% upside potential

[Pee Vee]

Signature Global (SGIL) has built up a robust pre-sales momentum (TTM bookings up ~7.6x over FY21–9mFY25), notable presence in the supply-constrained Gurugram market (unsold inventory only about ten months) and a capital-efficient business model (among lowest capital employed/unit of pre-sales). It is on track to achieve a net cash status aided by robust cash flow and minimal working capital needs. The ongoing realty upcycle and SGIL’s successful transition to the premium housing segment shall help it clock a pre-sales CAGR of 21% over FY25–27E. Potential entry into Noida/Delhi shall be a re-rating trigger in our view. Initiate at ‘BUY’ with a TP of INR1,436 (at 20% premium to NAV). Slowdown in the Gurugram market is a key risk.