Real estate company Signature Global Limited has focused on reducing its debt. Amidst this environment, investors and experts’ trust in the company’s stock remains intact. On Friday, the last trading day of the week, the stock rose more than 1 percent to reach the level of Rs 1430. The 52-week high of the stock is Rs 1,570. This price was on July 9. At the same time, the stock has seen a recovery from the low level of Rs 444 last year.
Target price for the stock
Brokerage Kotak Institutional Equities has recommended buying this stock. The target price for this stock has been set at Rs 1,555. The brokerage said that Signature Global reported strong pre-sales for the second consecutive quarter. Its revenue increased, due to which debt is reducing. The brokerage has revised the earlier target price of Rs 1,375 to Rs 1,555. At the same time, according to ICICI Securities, the stock can reach the level of Rs 1707. This shows a positive growth of 23%.
Debt reduced in June quarter
Realty firm Signature Global’s net debt fell 16 per cent to Rs 980 crore in the June quarter. The company said that this reduction has come due to better cash flow amid strong sales in housing projects. The company said that its net debt was Rs 980 crore as of June 30, 2024, while it was Rs 1,160 crore at the end of the previous financial year. The company aims to keep the net debt at less than 0.5 times the estimated operating surplus in the current financial year. Pradeep Kumar Agarwal, Chairman and Whole-time Director of the company, said that 30 percent of the annual pre-sale target has been achieved in the first quarter.
How were the June quarter results
Signature Global has earned a profit of Rs 6.76 crore in the April-June quarter of the current financial year. The company has turned profitable due to increased income. The company said that it had suffered a loss of Rs 7.22 crore in the same quarter a year ago. The total income of Gurugram-based company Signature Global stood at Rs 427.98 crore in the quarter ended June 2024 as against Rs 178.90 crore in the same quarter a year ago.
