Buy Phoenix Mills; target Rs 235: Firstcall Research

Firstcall Research report on Phoenix Mills

"Phoenix Mills has achieved a turnover of Rs. 698.24 million for the 1st quarter of the current year 2013-14 as against Rs. 626.00 millions in the corresponding quarter of the previous year. The company has reported an EBITDA of Rs. 690.23 millions and a net profit of Rs. 418.30 million against Rs. 305.96 million reported respectively in the corresponding quarter of the previous year. The company has reported an EPS of Rs. 2.89 for the 1st quarter as against an EPS of Rs. 2.11 in the corresponding quarter of the previous year."

Outlook and Conclusion: "At the current market price of Rs. 208.00, the stock P/E ratio is at 18.25 x FY14E and 15.41 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.11.40 and Rs.13.50 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 26 percent and 23 percent over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at 11.18 x for FY14E and 9.46 x for FY15E. Price to Book Value of the stock is expected to be at 1.53 x and 1.39 x respectively for FY14E and FY15E. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 235 for Medium to Long term investment," says Firstcall Research report.

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