Signature Global - Biggest Real Estate Company in NCR for Mid income and Afforable housing

Hello All,

This is my second Analysis of the stock on the forum. I hope to add some value here:

This thread is for Signature Global, recently listed Affordable and Middle income housing stock.

They are into business since almost 10 years. Their strengths are:

  1. Targeted Market: Focus on Gurugram, I feel this is a great strategy, this is where they started and understand the area and market very well. They don’t plan to change their focus elsewhere.

  2. Focus on Mid income: Want to serve mainly Middle income to Affordable housing only. This is very important since most of the leading real estate players want to focus on luxury and that is leading to competition in that space.

  3. Low capital Intensive business model: They don’t have huge land parcels, this way the capital requirement can be kept low in the industry it is generally very high.

  4. Professional team: They have hired professional CEO and CEO intends to keep running company with strong values and transparency.

  5. First generation family: Chairman and founder is first generation entrepreneur which I feel adds the passion needed for business like this.

Risks Involved:

  • Not much is known about founder family and how honest they are. Also no proven track record.
  • Company is yet to turn profitable and this is a big concern. I hope they are able to make money sooner than later.

Investment thesis:

  • When they were listed, they were just 5K Market cap company. Now if you see Godrej(almost 50 K market Cap), DLF 1.5 L Crore Market cap. I feel company will start showing huge improvements once they start showing some good numbers.
  • Since their focus is on Mid size, I feel this is where real growth will be in future.
  • Good Brand: With my basic research about the company and few calls here and there, I found that they have good brand and their delivery record is good.
  • They are reducing their debt: This is great sign, since the launch of IPO, they reduced their debt from 1000 crore to 396 Cr.

Their sales have increased from 242 Cr in 2020 to 1554 Cr in 2023. They have already delivered 6 Million square Feet (msf) real estate, 17 msf is getting built and 27 msf is launched.

With all this said, I feel if we all discuss about this company more and delve into it more, it can lead to some quality analysis and help all of us.

Note: I am already invested in this stock so my views should be very biased. Please do your due diligence before investing.

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