Domestic brokerage Nuvama Institutional Equities raised its target price on Phoenix Mills after the mall operator reported a 28.6-percent surge in net profit for the quarter ended March.
Phoenix Mills reported a consolidated net profit of Rs 326.73 crore for the March quarter, as compared to Rs 254.08 crore in the same period of the previous year.
Revenue surged 79.1 percent to Rs 1,305.95 crore for the quarter, up from Rs 729.04 crore in the March 2023 quarter.
Phoenix Mills reported consumption of Rs 2,830 crore at its malls in Q4FY24 – up 10 percent YoY on a like-to-like basis. Consumption for the entire financial year was up 23 percent at Rs 11,340 crore. The firm's management expects consumption to grow at a CAGR of 11-12 percent over the next three to five years.
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Positive factors
"Phoenix Mills’s leadership position in the retail realty space, ongoing industry consolidation, and its unique understanding of the Indian consumer’s psyche coupled with the structural story of urban consumption growth underpin our bullish stance on the company," said Nuvama Institutional Equities.
The brokerage added the Phoenix Mills' entry in new cities and operationalisation of under construction/planned assets are some of the stock triggers that are expected to play out over the next few years.
Nuvama said it remains bullish on Phoenix Mills as the player is a leader in the mall space. The brokerage retained its buy rating on the counter, and increased the target price to Rs 3,439, up from Rs 2,765 earlier. This implies an upside of 10 percent from the previous session's closing price.
Over the past year, shares of Phoenix Mills have more than doubled in value, rising 120 percent. In comparison, the benchmark Nifty 50 has risen around 23 percent during the same time period.
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