Motilal Oswal is bullish on Phoenix Mills has recommended buy rating on the stock with a target price of Rs 732 in its research report dated April 18, 2018.
Motilal Oswal's research report on Phoenix Mills
Phoenix Mills (PHNX) has an operational history of more than 100 years. A textile manufacturer at inception, the company has reinvented itself as a retail-led mixed-use mall developer. Its diversified portfolio of businesses comprises: (a) Retail mall development (enjoys a leadership position in cities where it operates) and (b) Hospitality, Residential and Commercial (together contributed 35% of revenue as of FY17).
Outlook
The stock trades at a PE of 29x/23x FY19/20E, P/BV of 2.6x/2.3x FY19/20E and EV/EBITDA of 13.7x/11.4x respectively. We value retail assets based on NAV approach, assuming a cap rate of 8% and a discount rate of 13%. We initiate coverage on PHNX with a Buy rating and an SOTP-based target price of INR732 (upside 21%).For all recommendations report, click here
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