Buy Phoenix Mills; target of Rs 1800: HDFC Securities

HDFC Securities is bullish on Phoenix Mills has recommended buy rating on the stock with a target price of Rs 1800 in its research report dated May 25, 2023.

Broker Research

May 28, 2023 / 20:08 IST

Buy

26 Aug, 2025 12:21

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HDFC Securities' research report on Phoenix Mills

Phoenix Mills (PHNX) reported revenue/EBITDA/APAT at INR 7.3/4.3/1.8bn, (missing)/beating our estimates by (1)/2/0%. Retail consumption stood at INR 22bn, at 59% growth over the pre-Covid level. Excluding new malls, growth was 37% over pre-Covid levels. Consumption was supported by higher growth in jewellery, fashion, electronics and entertainment categories. For FY23, consumption was the highest ever at INR 92bn, beating the guidance of INR 90bn. For FY24, PHNX expects to achieve INR 115bn in consumption (a growth of +25%), with INR 25bn contribution coming from new operational malls i.e. Citadel Indore and Palladium Ahmedabad. The overall trading occupancy excluding new malls stood at ~90%. PHNX expects to bring the overall trading occupancy (including new malls) to 93- 95% before Diwali 2023. PHNX is also ramping up its office portfolio with an aim to achieve 7.1msf of the leased assets by FY26 from 2.1msf of the current operational portfolio. In FY24, 0.9msf of the office assets in Hebbal, Bengaluru, will become operational.

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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