Buy Phoenix Mills; target of Rs 725: ICICI Direct

ICICI Direct's research report on Phoenix Mills

Key highlight for Phoenix Mills (PML) was improving consumption at retail malls with festivities amid the expected weak Q2FY21 prints. While Q2FY21 consumption was at 40-55% of Q2FY20, October 2020 consumption was up 44% MoM. Furthermore, for the first seven days of November were ~85% of last year (~75% on adjusted basis). In Q2FY21, reported revenues de-grew ~48% YoY to Rs 214.9 crore, with core portfolio (commercial + retail + hospitality) revenues down ~58% YoY to Rs 170.1 crore, amid retail rental waivers and weak hospitality performance. Reported EBITDA margin was down 810 bps YoY to 42.7%. The company reported a loss of Rs 35.9 crore.

Outlook

We maintain BUY rating with an SoTP based target price of Rs 725/share.

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