Feb'25 View on Signature Global India Ltd

Signature Global (India) Limited is a real estate development company operating in the National Capital Region of Delhi ("Delhi NCR") focused on offering affordable and mid-segment housing. After retreating from 1,600 level the stock has taken support at 1,100 levels and looks to bounce back above 1,600 level with the following factors acting in its benefit • Revenue recognition remained modest, with an adjusted EBITDA margin of 12%. • Collections improved to Rs1080cr (+40% yoy), leading to a healthy OCF margin of 34%. • Management is targeting embedded EBITDA margin of 35% in FY25. • Signature Global continues its streak of strong operational performance. • Q3FY25 pre-sales of Rs2770cr (+120% yoy), taking the 9MFY25 pre-sales to Rs8700cr—87% of the FY25E guidance of Rs10000 cr. • Management expects to grow at 20-25% in the next two years. • Valuations at 6.5X EV/EBITDA (FY26E) are attractive for consistent pre-sales growth.