Phoenix Mills Ltd’s share was up around 1 percent yesterday and closed at a price of Rs 1,314.50. It witnessed an intra-day high of Rs 1,332.30 with an upside of about 2.4 percent as compared to the previous closing levels of Rs 1,300.95.
Last week, the Singapore government sold its 2.88 percent stake in Phoenix Mills for around Rs 670 crores through open market transactions. As per the bulk deal data available on NSE, 51,49,734 shares were offloaded at an average price of Rs 1,300.15 apiece.
During the same period, Morgan Stanley initiated coverage on the stock with a ‘buy’ call having a target price of Rs 1,700 which indicates an upside of around 30 percent from the current price levels.
Phoenix Mills Ltd is a real estate development company operating in India. The group is engaged in various aspects of development which includes planning, construction, and marketing, as well as management, and sales of the complete development. These properties include retail, hospitality, commercial, and residential complexes.
The majority of company’s revenue is derived from license fees and rental income. The Hospitality segment of the company is engaged in the operation of hotels and restaurants.
Financials of the company portray a contrasting scenario as far as the revenue and net profit figures are concerned. On one hand, revenues grew from Rs 651 crores in Q2 to Rs 684 crores in Q3, and on the other hand, the net profit figures of the company took a slight downward movement from Rs 222 crores in Q2 to Rs 212 crores in Q3.
The basic profitability measures such as the ROE and ROCE improved on a YoY basis with ROE shifting from 0.78 percent in FY20-21 to 4.28 percent in FY21-22. ROCE figures moved from 4.41 percent in FY20-21 to 6.33 percent in FY21-22.
Since the past five financial years, the company has been in a position of reducing the debt to equity ratio with the most recent movement in reporting from 0.81 during FY20-21 to 0.61 in FY21-22.
As per the quarter ending December 2022, promoters of the company hold a 47.31 percent stake. FIIs reduced their stake from 30.6 percent in Q2 to 29.27 percent in Q3.
Written by Amit Madnani
