ICICI Securities research report on The Phoenix Mills
The Phoenix Mills (PHNX) has seen Mar’22 consumption across malls at Rs5.6bn or 105% of Mar’19 levels on LTL basis (Mar’20 saw mall shutdowns hence not comparable) while Q4FY22 consumption of Rs14.8bn stood at 91% of Q4FY19 levels on LTL basis. In Jan’22, LTL consumption stood at 70% of Jan’20 levels in spite of Omicron disruption in mall operations for the month, and in Feb’22, consumption levels were back to 94% of pre-Covid levels. We believe that the reopening of multiplexes and lowering of restrictions on F&B have contributed to the improved performance in Mar’22. We model for FY23E rental income of Rs12.7bn (Rs11.0bn on LTL basis vs. Rs10.2bn in FY20). With Indore and Ahmedabad malls to open in FY23E and Pune (Wakad) and Bengaluru (Hebbal) in FY24E, we expect 14% rental income CAGR over FY20-25E.
We reiterate our BUY rating with an unchanged target price of Rs1,336/share based on 15% premium to Mar’23E NAV of Rs1,162/share. Key risks to our call are a fresh Covid wave impacting mall consumption and fall in mall occupancies and rentals.
At 11:34 hrs Phoenix Mills was quoting at Rs 1,077.20, up Rs 22.35, or 2.12 percent.
It has touched an intraday high of Rs 1,083.50 and an intraday low of Rs 1,041.75.
It was trading with volumes of 2,086 shares, compared to its thirty day average of 14,503 shares, a decrease of -85.62 percent.
In the previous trading session, the share closed down 1.90 percent or Rs 20.45 at Rs 1,054.85.
The share touched its 52-week high Rs 1,199.95 and 52-week low Rs 672.00 on 10 November, 2021 and 23 April, 2021, respectively.
Currently, it is trading 10.23 percent below its 52-week high and 60.3 percent above its 52-week low.
Market capitalisation stands at Rs 19,230.11 crore.
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