Lancelot D'Cunha, CEO, Sharyans Wealth Management shares his view on Phoenix Mills .
D'Cunha told CNBC-TV18, "Phoenix Mills had set up five market cities so they have commissioned two of them during this year which gave them a leasable area of about 5 million square feet. The projects which they have under implementation will get completed in FY13 and will increase the leasable area to about 10 million square feet. So it is almost double. The company has a networth of 1,660 crore with borrowings of only Rs 100 crore so it is not even highly leveraged unlike many other real estate companies."
He further added, "Rentals are fairly secure because they have already signed up almost 70% of the space on the properties that they have already leased out which is a good sign. Rentals are fairly stable in terms of rates per square foot which is again very encouraging for the company. Very important point is that when you look at the other projects that are coming in that will all add to the bottom-line. This year we expect Phoenix mills to generate PAT of about 110 crore which makes it fairly well, fairly attractive. Although the sector has been negative and that is why the price of the stock has also come down in line with all the real estate and infrastructure companies."
Disclosures: Myself and my clients have investments in all these three companies.
