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Please refer to important disclosures at the end of this report
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Phoenix Mill Ltd is one of the leading mall developers and operators in India.
Phoenix offers a unique opportunity for any retailer to expand rapidly in
India due to its strong operational performance and scalability. Its revenue
CAGR over 5 years stand at 6.5%. During 1QFY19 the company’s sales rose
by 48.9% to `615cr. This was on the back of higher revenue recognition in
residential business and was driven by retail rental income. PMC Lucknow is
expected to be operational in H2FY20E. With ~75% area already pre-
leased, the management expects trading on ~80% leasable area at the
commencement of operations. The company’s retail income is expected to
bolster with these property additions. Further, PML announced an
amalgamation scheme of its subsidiary company, Phoenix Hospitality
Company Pvt Ltd (PHPCL), with PML. This is just for simplification of the
corporate structure with direct holding by PML in key operating companies.
Phoenix Mills focuses on strengthening its balance sheet with a decrease in
debt-equity. From 2x in FY15, it has come down to 1.3x in FY19.
Simultaneously interest coverage ratio has improved from 1.6x in FY15 to
2.5x in FY19. ROCE has been improving continuously and stands at 13% in
FY19 from 10.4% in FY15. The stock is currently trading at 12xEV/EBITDA.
The company also pays dividend of average 15%. Considering all the
operational performance factors, we recommend BUY.
BUY
CMP `656
52 Week High / Low
736/489
Avg. Daily Volume
10,848
Realty
Market Cap (` cr)
10,052
2
BSE Sensex
36,644
Nifty
11,017
Face Value (`)
Reuters Code
PHOE.BO
PHNX IN
0.5
Jaikishan Parmar
022 – 3935 7600 Ext: 6810
jaikishan.parmar@angelbroking.com
Phoenix Mills Ltd
Others |Realty
Sept 05, 2019
2
Phoenix Mills Ltd| Realty
2
Research Team Tel: 022 - 39357600 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Phoenix Mills Ltd
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)