Q3FY21 Result Update - Phoenix Mills - ICICI Direct

The key highlight for Phoenix Mills (PML) was consumption recovery at retail malls with festivities. During Q3FY21, total consumption was at Rs. 1,380 crore (up 195% QoQ; at ~67% of Q3FY20) and the improving trend continued in January 2021 - growing 5% MoM to Rs. 530 crore (~83% of January 2020). Reported revenues de-grew ~34% YoY to Rs. 337.8 crore, with core portfolio (commercial + retail + hospitality) revenues down ~39% YoY to Rs. 282.3 crore, dragged by weak hospitality performance (down 74% YoY). Reported EBITDA margin was down 366 bps YoY to 47%.

Valuation & Outlook

PML remains a quasi-play on India's consumption story, given the quality of assets, healthy balance sheet & strategic expansion plans. The QIP fund raise has boosted the liquidity & growth ammunition and rental asset expansion plan in Kolkata is testimony. With only five to six major retail mall developers currently in India, and given its USP of operating large format properties efficiently, PML is as a superior player in the medium to long term. We maintain BUY rating with SoTP based target price of Rs. 950 (Rs. 795, earlier).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_PhoenixMills_Q3FY21.pdf

Shares of The Phoenix Mills Ltd was last trading in BSE at Rs.839.75 as compared to the previous close of Rs. 816.75. The total number of shares traded during the day was 8850 in over 815 trades.

The stock hit an intraday high of Rs. 850.35 and intraday low of 818.75. The net turnover during the day was Rs. 7421765.

Source : Equity Bulls

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