Buy Phoenix Mills, target price Rs 1231: ICICI Securities

ICICI Securities has buy call on Phoenix Mills with a target price of Rs 1231. The current market price of Phoenix Mills Ltd. is Rs 856.

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 14710.45 Crore) operating in Real Estate sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 216.36 Crore, down -50.31 % from last quarter Total Income of Rs 435.43 Crore and up 46.35 % from last year same quarter Total Income of Rs 147.84 Crore. Company reported net profit after tax of Rs -34.78 Crore in latest quarter.


Investment Rationale
The brokerage reiterates BUY rating with an unchanged Mar-22 SoTP based target price of Rs1,231/share which includes Phoenix Rise office and retail project of 1.3msf and retains 10% premium to NAV considering growth opportunities from growth capital raised from GIC PE and CPPIB platform deals. Key risks to the call are an extended second Covid wave impacting mall consumption and fall in mall occupancies and rentals.

Promoter/FII Holdings
Promoters held 45.5 per cent stake in the company as of June 30, 2021, while FIIs held 34.9 per cent, DIIs 15.7 per cent and public and others 3.9 per cent.