Fundamental Analysis
PHOENIX MILLS LTD.
Ticker : 503100
BUY : Rs 757.80
Target : Rs 840
Phoenix Mills Limited is a leading retail mall developer & operator in India. It has completed the development of over 175 lakh square feet, varying across retail, hospitality as well as commercial & residential asset classes. On a consolidated quarterly front, its net sales fell by 48.22 per cent in Q2FY21 to Rs 214.91 crore from Rs 415.07 crore in Q2FY20. The company reported an operating profit of Rs 106.12 crore in Q2FY21, down by 53.91 per cent from Rs 230.22 crore reported in Q2FY20. Phoenix Mills reported a net loss of Rs 39.99 crore in Q2FY21 as against the net profit of Rs 64.26 crore reported in Q2FY20. The company reported weak quarterly numbers as the majority of malls were closed. Now, since all the states have allowed the re-opening of malls, consumption is expected to increase with an increase in mall operational hours across cities, resumption of F&B, and the opening of multiplexes. Hence, we recommend a BUY.