Review

PHOENIX MILLS LTD. 

Ticker : 503100
FV : Rs 2
52-Week H/L : Rs 979.5/466.25

We had previously recommended Phoenix Mills in volume 37, no. 08, dated December 14, 2020, when the scrip was trading at Rs 757.80, based on increasing operational malls, mall hours, F&B places, and multiplexes thereby, benefitting its revenue. On a consolidated quarterly front, for Q2FY21, its net sales fell by 48.22 per cent to Rs 214.91 crore from Rs 415.07 crore in Q2FY20. The operating profit contracted by 53.91 per cent to Rs 106.12 crore in Q2FY21 compared to Rs 230.22 crore reported in Q2FY20. Still recovering from the impacts of the pandemic-led lockdowns, 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. Phoenix Mills, along with its subsidiaries, jointly signed a non-binding term sheet with an affiliate of GIC Private Ltd for the formation & development of a strategic retail-led mixed-use platform. Such expansions will help the company’s growth and hence, we recommend HOLD.