Gladiator Stocks - Phoenix Mills - ICICI Direct

Technical View

- The Hospitality sector would be benefitting from the complete unlock of the economy. The Phoenix Mills is a key proxy of the unlock theme which offers fresh entry opportunity to ride next leg of up move based on following observations:

a) the stock has witnessed a faster retracement as it retraced past twelve week's decline (Rs. 1098-885) in just four weeks, exhibiting structural turnaround that bodes well for extension of the ongoing up move

b) since November 2020, on multiple occasions buying demand emerged in the vicinity of 100 days EMA, highlighting elevated buying demand. In current scenario as well stock rebounded after forming a higher base above 100 days EMA

Fundamental View

- The Phoenix Mills Ltd (PML) is a leading retail mall developer and operator in India. It is into retail-led, mixed-use properties and has developed 17.5+ mn sq ft of retail, commercial, hospitality, and residential asset class. Currently, PML has an operational retail area of ~7 mn sq ft spread over nine operational malls whereas it is developing another five malls with ~6 mn sq ft of retail space

- During Q4FY22, retail consumption across majority of PML's malls has improved to Rs. 1,657 crore and exceeded pre-Covid levels led by resurgent consumer demand, resumption in F&B, and easing of restrictions. Going forward, the momentum that picked up in the near-to-medium term is likely to continue with a) improving consumer demand, b) increased vaccination levels and c) normalisation in business operations. Rentals are also likely to be at/better than pre-Covid level for the operational malls

- Overall, 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/investments by GIC/CPPIB has boosted the liquidity & growth ammunition. With only five to six major retail mall developers currently in India, and given its USP of operating large format properties efficiently, PML remains a superior player in the medium to long term.

For details, click on the link below: Link to the report

Source : Equity Bulls

Keywords

GladiatorStocks PhoenixMills ICICIDirect TechnicalView FundamentalView