Realty Stocks to buy: The domestic stock markets witnessed a strong rally on Thursday (January 2). The Sensex rose by more than a thousand points in intra-day trade while the Nifty50 also showed strength and crossed the 24 thousand mark. However, the selling by foreign investors has troubled the market due to which the major benchmark indices Sensex and Nifty-50 are still trading more than 7% down from their 52 week high.

Amid the volatile environment in the stock market, stocks with strong fundamentals are looking attractive for investment. Considering the entry into the medium/premium segment and strong operating cash flow (OCF) generation, brokerage firm Motilal Oswal has recommended buying the realty sector stock Signature Global.

The brokerage firm says that Signature Global's stock is looking strong due to the strategic change of entry from affordable segment to new segments like medium and premium.

Signature Global: Target Price 2000| Rating: BUY| Upside Return 48%|

Motilal Oswal has given a BUY rating on the stock of realty sector giant Signature Global for the long term. Along with this, a target price of Rs 2000 per share has been set. This stock has risen by more than 3% in the last one month. Whereas in the last one year, the stock has given a great return of 49.80%. In comparison, the BSE Sensex has risen by 11.10%.

Signature Global's stock is trading around Rs 1393 on Thursday (January 2). Thus, looking at the current price, the stock can give an upside return of about 44 % in the future. The 52-week high of the stock is Rs 1,645 and the low is Rs 926 while the market cap is Rs 19,573 crore.

Signature Global: What is the brokerage's opinion

Brokerage firm Motilal Oswal says that Signature Global is preparing to launch a strong pipeline of premium projects. We expect this to help the company gain 35% CAGR in bookings during FY24-27 and maintain the growth momentum.

According to the brokerage, strong pre-sales growth will lead to rapid growth in operations across key parameters such as cash flow, revenue and profitability. This will increase confidence in the company's execution capability and future growth potential.

Motilal Oswal said that we have valued the stock on the basis of the Net Present Value (NPV) formula on Signature Global's existing project pipeline of 3 crore square feet (including latest launches). These projects are worth around Rs 15 thousand crore. Considering all these aspects, we reiterate BUY rating with a target price of Rs 2000 per share, which works out to an upside return of about 50%.