Buy SignatureGlobal India; target of Rs 1905: ICICI Securities

ICICI Securities research report on SignatureGlobal India

We retain our BUY rating on SignatureGlobal India (Signature) with an unchanged TP of INR 1,905, valuing it at 10x FY24–26E average embedded EBITDA on sales bookings. Signature recently launched Phase 1 of its Daxin Vistas, Sohna project in Gurugram. It consists of independent floors and residential/industrial plots and has an estimated GDV >INR 20bn. The company has a strong launch pipeline – FY24–28E cumulative projects GDV of >INR 450bn. Thus, we envisage Signature clocking 19% sales booking CAGR over FY24–27E; sales booking ranging between INR 100–120bn annually over FY25–27E. Given Signature’s established presence across Gurugram, its next level of growth may come from Noida, NCR where the company may look to augment its land bank via outright purchases/JDAs.

Outlook

We retain our BUY rating with an unchanged target price of INR 1,905 based on 10x FY24–26E average embedded EBITDA of INR 27.9bn at an EBITDA margin of 30%.