Phoenix Mills Ltd. share price target

Phoenix Mills is country's leading developer and operator of retail malls. It owns and operates 9 malls across 6 cities with a combined 0.64mn sqm of retail space, and has another 4 malls currently under development with...

Other new capex includes 1) setting up of new integrated unit with 3.5 MT GU and 3.8 MT clinker unit in Rajasthan by Q4FY24E, 2) 3 MT grinding unit in West Bengal by Q4FY23E, 3) 106 MW solar power The entire total capex of | 4750 crore till FY24E will be funded via internal accruals. Total domestic capacity to reach 53.4 MT post these expansions Expected to continue to maintain its cost leadership, market share due to...

As per company, The Phoenix Mills (PHNX) has clocked mall consumption of Rs6.6bn in Nov’21 which is 116% of Nov’19 levels and Rs6.7bn in Oct’21 which is 91% of Oct’19 levels. While the threat of a fresh round of Covid induced mall closures remains a risk, we expect mall rentals to revert to pre-Covid levels by Q4FY22 as consumption continues to improve.

Reported revenues grew ~72.8% YoY to | 371.3 crore. Retail revenues grew ~71.6% YoY at | 233.5 crore while hospitality revenues were up ~275% YoY at | 34.5 crore. While Q2 consumption was at ~74% of pre-Covid, October 2021 consumption across retail portfolio was at ~| 660 crore, at 90% of October 2019. Commercial remained a resilient segment, which...

PML has an operational retail area of ~7 mn sq ft spread over nine operational malls and is developing another five malls with 6+ mn sq ft of retail space. It has a GLA of 1.6 mn sq ft in the commercial segment. It plans to add 5.3 mn sq ft of commercial office space...

PML rental income in Q4FY21 at | 216.6 crore was at ~97% of Q4FY20 and up 23% QoQ. FY21 rentals at | 563 crore was ~55% of FY20. Additionally, retail collections witnessed sharp improvement (up 42% QoQ) at | 370 crore during Q4FY21. Currently, consumption, footfall remained impacted by lockdowns led closure and PML expects to resume discussions with retailers close to reopening. However, it remains confident that recovery could be much quicker post reopening. We conservatively bake in rentals at | 868 crore (~15% lower than FY20 levels on a like-to-like basis), given the likely...

Retail continues to witness a demand recovery, while the same for the Office segment largely remains steady with the recently completed office space seeing increased leasing activity. The Hospitality segment is likely to remain subdued in the short term. PHNX remains one of the best proxy plays on India's consumption story in the medium-to-long term. Reiterate Buy....