Buy Phoenix Mills; target of Rs 1800: HDFC Securities

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26 Aug, 2025 12:21

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HDFC Securities' research report on Phoenix Mills

Phoenix Mills (PHNX) reported weak revenue/EBITDA/APAT at INR 6.8/3.8/1.7bn, a miss at all levels. Retail consumption was robust during the quarter at INR 26.5bn (+28% overall and +14% on a like-to-like basis from Q3FY20), aided by growth in Jewellery, Fashion, Electronics and Entertainment categories. YTD Jan’23, consumption stands at INR 78bn and it is expected to cross INR 90bn, supported by growth in consumption across categories and malls and contribution from the upcoming mall in Ahmedabad which is expected to open by Feb’23 end. PHNX forayed into warehousing with INR 532mn of investment on a land parcel in NCR. New drivers are set to be in place with (1) Surat mall land (1msf of GLA) acquisition (PHNX holding at 53.7% stake); (2) business development target of 1-2 land deal every year with INR 10bn expected investment; (3) office development gaining traction in Bengaluru/Pune/Chennai; and (4) PHNX expanding residential segment with Alipore residential project in Kolkata (a total outlay of INR 10bn, GDV INR 20bn and 1msf of saleable area). The two upcoming office spaces in Bengaluru and Pune will begin leasing in H1FY24 and FY25 resp.

Outlook

Given strong traction in consumption, captive mall expansion, the addition of office space, a strong business development pipeline and lower net debt, we maintain BUY, with an unchanged SOTP of INR 1,800/sh.

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Phoenix Mills - 09 -02 - 2023 - hdfc