SIGNATURE - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 2.9

📊 Core Financial Analysis

Profitability & Returns

EPS: ₹7.19 — modest earnings for a ₹1,129 stock.

ROE: 14.9% & ROCE: 7.56% — ROE is decent, but ROCE is relatively weak, suggesting capital inefficiency.

PAT Qtr: ₹61.1 Cr vs ₹29.1 Cr — strong sequential growth (+48.3%), but needs consistency to justify valuation.

Debt & Leverage

Debt-to-Equity: 1.17 — moderately high, acceptable if growth is robust.

Book Value: ₹51.7 — trading at ~21.8x book, which is extremely high, even for a consumer brand.

Dividend Yield: 0.00% — no payouts, typical for growth-focused companies.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 157 Highly overvalued vs industry PE of 40.2

P/B Ratio ~21.8 Excessive, even for premium brand stocks

PEG Ratio 3.72 Indicates overvaluation relative to growth

Intrinsic Value ~₹750–₹850 Current price is well above fair value, suggesting downside risk

🏢 Business Model & Competitive Edge

Signature Global operates in real estate development, primarily affordable and mid-income housing.

Competitive strengths

Strong brand in NCR region

Government policy tailwinds (PMAY, urban housing)

Asset-light model with JV structures

Risks include

High valuation

Execution delays

Interest rate sensitivity

High debt relative to equity

📉 Technical & Sentiment Indicators

RSI: 21.3 — deeply oversold, potential for technical bounce.

MACD: -19.7 — bearish momentum.

Volume above average — indicates selling pressure or speculative interest.

DMA 50 & 200 at same level — consolidation zone, but price below both.

FII/DII holding slightly up — mild institutional interest.

🧠 Investment Guidance

🔍 Entry Zone (If Undervalued)

Wait for correction to ₹850–₹900

Current valuation is unsustainable without significant earnings growth.

RSI suggests short-term bounce, but not a long-term entry point.

📈 Long-Term Holding View

Avoid fresh entry at current levels

Valuation is excessive.

ROCE is weak and debt is elevated.

Monitor for earnings consistency and margin expansion before considering accumulation.

Would you like a comparison with other listed real estate developers like Macrotech (Lodha), Godrej Properties, or DLF to assess relative valuation and growth potential?

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