Signature Global has 32% upside from the CMP. Target Price ₹1470

[Ravi]

• Pre-sales for the year remain intact: Signature Global clocked pre-sales of Rs 2,640 Cr for the quarter, down 15% YoY. This decline was primarily driven by delayed launches, which were caused by approval delays and are expected to continue into H2FY26. The company is positioned to achieve its FY26 target of pre-sales of Rs 12,500 Cr, having already achieved 21% of the target. The collections stood at Rs 930 Cr. The average ticket size per unit was ~Rs 3.4 Cr, mainly driven by the launch of premium projects. This quarter, the company launched 2 Mn sq. ft. with a GDV of Rs 3,900 Cr. Flagship launch was Cloverdale in Sector 71, phase 2 of its Titanium project. The pricing of Cloverdale was about 12.5% higher than Titanium, which was launched a year prior, indicating strong market demand and price appreciation.

• Strong Upcoming Launches and Execution: For FY26, the company has planned 2 major launches, 3-3.5 Mn sq. ft. in Sector 37D and 4 Mn sq. ft. in Sector 71, with approvals at an advanced stage and expected by Oct/Nov’25. The company has strategically engaged Grade A contractors like Ahluwalia Contracts (For DXP), Arabian Construction Company (for twin tower DXP) and Capacite (for Titanium SPR) to enhance construction pace. It has delivered over 15 Mn sq. ft. of projects to date. In addition, over 9 Mn sq. ft. of projects, primarily mid-income homes, are in advanced stages of completion, with rapid delivery targeted in the current and upcoming fiscal years.

• Business Development and Cashflows: Signature Global’s collections stood at Rs 930 Cr for the quarter, down by 23% YoY. The company has anticipated a significant improvement in collections for H2FY26. It continues to expand its land bank, having acquired 10 acres near the Daxin project in the Sohna corridor. Signature’s portfolio includes 24+ Mn sq. ft. of land stage inventory, holding a substantial GDV potential of over Rs 40,000 Cr, intended for launch over the next 2-3 years. A key aspect of its strategy is operating on owned land, which constitutes comfortably less than 10% of the share of land owners across its portfolio, ensuring a higher internal cash surplus. Future expansion possibilities include a potential 100-acre Phase 2 development for its project in Sona, although such acquisitions are time consuming. In Sector 71, 70 acres out of the initial 93 acres remain unutilized, with potential to add another 3-4 Mn sq. ft. of developable area beyond the existing land bank.

Sector Outlook: Positive

Company Outlook & Guidance: Signature Global maintains a confident outlook for FY26, projecting pre-sales of Rs 12,500 Cr and revenue recognition of Rs 4,800 Cr, driven by healthy demand, a strong launch pipeline, and disciplined execution. The company has an ambitious target to launch over 10 Mn sq. ft. of new projects in FY26, with an estimated Gross Development Value of ~Rs 17,000 Cr. Key upcoming launches for the remainder of the year include 3 to 3.5 Mn sq. ft. in Sector 37D and another 4 Mn sq. ft. in Sector 71, with approvals progressing well and launches anticipated in H2FY26.

Current Valuation: 3.8x FY27E Pre-sales/EBITDA (Earlier 3.8x FY27E Pre-sales/EBITDA)

Current TP: Rs 1,470/share (Earlier TP: Rs 1,470 /share).

Recommendation: With a 32% upside from the CMP, we maintain our long-term BUY rating on the stock.