Motilal Oswal Financial Services neutral on Phoenix Mills; target price Rs 1845

Motilal Oswal Financial Services has neutral call on Phoenix Mills with a target price of Rs 1845. The current market price of Phoenix Mills is Rs 1823.9.

Phoenix Mills, incorporated in the year 1905, is a Mid Cap company (having a market cap of Rs 32520.34 Crore) operating in Real Estate sector.

Phoenix Mills key Products/Revenue Segments include Licence Fees, Service Charges and Others for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 839.60 Crore, up 11.24 % from last quarter Total Income of Rs 754.73 Crore and up 40.44 % from last year same quarter Total Income of Rs 597.84 Crore. Company has reported net profit after tax of Rs 289.71 Crore in latest quarter.

Investment Rationale
The company has progressed well on ramping up occupancy in Indore and Ahmedabad. It has recently inaugurated Pune mall and is on track to deliver Bengaluru mall in 3QFY24. The brokerage believe that the company’s growth trajectory continues to remain intact, however a large part of earnings growth over the next two years is already priced in and there is seen limited upside potential in the near term.

Promoter/FII Holdings
Promoters held 47.3 per cent stake in the company as of 30-Jun-2023, while FIIs owned 28.56 per cent, DIIs 19.93 per cent.