Buy Phoenix Mills, target price Rs 1336: ICICI Securities

ICICI Securities has buy call on Phoenix Mills with a target price of Rs 1336. The current market price of Phoenix Mills Ltd. is Rs 900.5. 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 16072.66 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 31-12-2021, the company has reported a Consolidated Total Income of Rs 447.01 Crore, up 15.44 % from last quarter Total Income of Rs 387.22 Crore and up 26.65 % from last year same quarter Total Income of Rs 352.95 Crore. Company has reported net profit after tax of Rs 102.26 Crore in latest quarter.


Investment Rationale
The brokerage reiterates BUY rating with a revised target price of Rs1,336/share (earlier Rs 1,231) as it rolls forward SoTP valuation to Mar’23E and incorporate the balance 50% stake acquisition in Chennai Market City SPV for Rs9.2bn in FY23E. It ascribes a 15% premium to NAV considering growth opportunities from growth capital raised from GIC PE and CPPIB platform deals. Key risks to the call are a fresh Covid wave impacting mall consumption and fall in mall occupancies and rentals.

Promoter/FII Holdings
Promoters held 45.48 per cent stake in the company as of 30-Sep-2021, while FIIs owned 32.29 per cent, DIIs 18.04 per cent.