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Securities has buy call on Phoenix Mills with a target price of Rs 1364. The current market price of . is Rs 1077.3. Time period given by analyst is one year when Ltd. price can reach defined target.
Phoenix Mills Ltd., incorporated in the year 1905, is a Mid Cap company (having a market cap of Rs 19243.50 Crore) operating in Real Estate sector.
Phoenix Mills Ltd. key Products/Revenue Segments include Licence Fees, Service Charges and Sale of services for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 519.82 Crore, up 16.29 % from last quarter Total Income of Rs 447.01 Crore and up 19.38 % from last year same quarter Total Income of Rs 435.43 Crore. Company reported net profit after tax of Rs 117.34 Crore in latest quarter.
Investment Rationale
Phoenix Mills (PHNX) reported strong revenue/EBITDA/APAT at INR 4.9/2.4/1.05bn, beat at all levels. Retail consumption for the year was INR 46.8bn (excl. Palassio) and was 1.7x FY21 and 70% of FY20/FY19 level. Consumption has bounced back and, in Apr-22, it was 129% of pre-COVID level. The effect of inflation on consumption was not significant; however, price escalation is on the cards from many retailers, which will translate into higher revenue for PHNX. The convergence of leased and trading occupancy shall further push growth by ~8% as multiple tenants under fit-outs move to trading. PHNX acquired the remaining stake in PMC Chennai for INR 9.4bn at a cap rate of ~9%. Within office space, Fountainhead Tower 2 started contributing. Office income was up 22% YoY in FY22. Until now (in FY23), 0.1msf has been leased in this segment. Gross debt inched up INR 740mn sequentially, on account of debt drawn for Indore and Ahmedabad mall construction, which are expected to commence operations by Diwali 2022. The brokerage maintains BUY, with an unchanged SOTP of INR 1,364 on account of: (1) slightly better rental pricing; (2) 15% NAV premium on account of likely new mall addition (PML has huge growth headroom as balance sheet is under-leveraged and it may now shift gear from capital perseveration to growth); and (3) likely increase in new mall/office addition.
Promoter/FII Holdings
Promoters held 47.33 per cent stake in the company as of 31-Mar-2022, while FIIs owned 30.69 per cent, DIIs 17.45 per cent.
Phoenix Mills Ltd., incorporated in the year 1905, is a Mid Cap company (having a market cap of Rs 19243.50 Crore) operating in Real Estate sector.
Phoenix Mills Ltd. key Products/Revenue Segments include Licence Fees, Service Charges and Sale of services for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 519.82 Crore, up 16.29 % from last quarter Total Income of Rs 447.01 Crore and up 19.38 % from last year same quarter Total Income of Rs 435.43 Crore. Company reported net profit after tax of Rs 117.34 Crore in latest quarter.
Investment Rationale
Phoenix Mills (PHNX) reported strong revenue/EBITDA/APAT at INR 4.9/2.4/1.05bn, beat at all levels. Retail consumption for the year was INR 46.8bn (excl. Palassio) and was 1.7x FY21 and 70% of FY20/FY19 level. Consumption has bounced back and, in Apr-22, it was 129% of pre-COVID level. The effect of inflation on consumption was not significant; however, price escalation is on the cards from many retailers, which will translate into higher revenue for PHNX. The convergence of leased and trading occupancy shall further push growth by ~8% as multiple tenants under fit-outs move to trading. PHNX acquired the remaining stake in PMC Chennai for INR 9.4bn at a cap rate of ~9%. Within office space, Fountainhead Tower 2 started contributing. Office income was up 22% YoY in FY22. Until now (in FY23), 0.1msf has been leased in this segment. Gross debt inched up INR 740mn sequentially, on account of debt drawn for Indore and Ahmedabad mall construction, which are expected to commence operations by Diwali 2022. The brokerage maintains BUY, with an unchanged SOTP of INR 1,364 on account of: (1) slightly better rental pricing; (2) 15% NAV premium on account of likely new mall addition (PML has huge growth headroom as balance sheet is under-leveraged and it may now shift gear from capital perseveration to growth); and (3) likely increase in new mall/office addition.
Promoter/FII Holdings
Promoters held 47.33 per cent stake in the company as of 31-Mar-2022, while FIIs owned 30.69 per cent, DIIs 17.45 per cent.
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