Buy Phoenix Mills, target price Rs 1645: ICICI Securities

ICICI Securities has buy call on Phoenix Mills with a target price of Rs 1645. The current market price of Phoenix Mills Ltd. is Rs 1372.9. Time period given by analyst is one year when Phoenix Mills 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 24639.28 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 30-06-2022, the company reported a Consolidated Total Income of Rs 597.84 Crore, up 15.01 % from last quarter Total Income of Rs 519.82 Crore and up 176.32 % from last year same quarter Total Income of Rs 216.36 Crore. Company reported net profit after tax of Rs 745.01 Crore in latest quarter.

Investment Rationale
The brokerage reiterates BUY rating with an unchanged target price of Rs1,645/share based on 20% premium to our Mar’23E NAV of Rs1,371/share which includes increase in Palladium, Mumbai leasable area and considers growth opportunities from new office capex and new malls (including Surat). Key risks to call are a fresh Covid wave impacting mall consumption and fall in mall occupancies and rentals.

Promoter/FII Holdings
Promoters held 47.32 per cent stake in the company as of 30-Jun-2022, while FIIs owned 31.6 per cent, DIIs 16.67 per cent.