UBS puts ‘buy’ on Phoenix Mills

The operator, Shangri-La will cease operating the hotel on September 6 with no penalties payable by either side given mutual agreement.


While it believes the termination of the 20-yr hotel management contract is likely to be sentiment negative, it doesn’t foresee any material impact on earnings given the hotel’s low EBITDA contribution & no penalty payments arising on termination.

We think growth and earnings are at inflection point with faster stabilization of Market City malls driving healthy EBITDA (Rs847m in Q1) and strong visibility on Ph II resi launches in FY14 at higher pricing.

Target: Rs 350
Current price: Rs 188