The recent rate cut by the US Fed has increased the expectations for the RBI to also give some relief by lowering interest rates. This could be quite beneficial for the real estate and other capital-intensive sectors as lower borrowing costs help to increase profit margins.
From this space, investors have a good opportunity to focus on - Signatureglobal (India) Limited. It is a well-known property developer with a market capitalization of INR 20,778 crore. The company has a special focus on budget-friendly housing projects which is what makes it a leader in this niche.
The stock is already up 233% in one year, but there is still more upside left. ProTips - a great tool to dig deeper into the fundamentals tells that analysts expect the company’s income to grow this year which was INR 16.18 crore in FY24, the highest since FY20 (at least). In fact, FY24 was the first profitable year for the company in the last 5, depicting a strong turnaround story that is not going unnoticed.
FIIs have ramped up their stake to the highest level at 8.33% in June 2024, all thanks to increasingly better performance and still lower valuations.
Image Source: InvestingPro+
As per InvestingPro’s fair value tool, the true intrinsic value of the counter is INR 1,892.6 per share, which is 23.9% higher than the CMP of INR 1,527.4. This value has been derived after carefully analyzing 11 financial models and taking a mean of all to negate all human biases and tail-end valuations.
If you prefer to take other analysts’ opinions, InvestingPro+ also shows that. In this case 3 of them covering the stock have given an average target price of INR 1,820 quite close to the fair value calculated by InvestingPro+.
Read More: Sectors in India Poised to Benefit After the U.S. Fed’s Rate Cut
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