Phoenix Mills PHOMIL) - ICICI...
Transcript of Phoenix Mills PHOMIL) - ICICI...
ICIC
I S
ecurit
ies –
Retail E
quit
y R
esearch
Result
Update
February 12, 2020
CMP: | 882 Target: | 1020 (16%) Target Period: 18 months
Phoenix Mills (PHOMIL)
BUY
Strong all-round performance...
Phoenix Mills’ (PML) topline grew 16.2% YoY to | 511.8 crore. Adjusting for
residential business (| 48.1 crore), core portfolio (retail, commercial &
hospitality) revenues grew 10.3% YoY to | 463.7 crore. EBITDA margins
expanded 20 bps YoY to 50.7%. RPAT grew 29.7% YoY to | 91.9 crore.
Adjusting for residential business PAT, core portfolio PAT grew at a strong
47.2% YoY to | 83.3 crore in Q3FY20.
Retail rental income grows 8% YoY in Q3FY20
PML reported retail rental income growth of 8% YoY to | 277.7 crore mainly
driven by PMC Bengaluru, PMC Pune, PMC Mumbai and HSP & Palladium.
Overall, operational malls reported strong overall consumption growth of
10% YoY to | 2,067.2 crore in Q3FY20 on the back of a festive October and
December, 2019. Consumption growth also remains strong at 8-12% YoY in
January, 2020, which is encouraging. On the trading density front, HSP &
Palladium, PMC Bengaluru, PMC Pune, PMC Mumbai reported 13%, 11%,
11%, 9% growth, respectively, in Q3FY20. HSP & Palladium recorded trading
density of | 3,620/sq ft per month, which is among the highest in India. PMC
Mumbai reported trading density at | 1,415/sq ft per month, thus closing the
gap with performance of other leading malls in the vicinity. We note that it
has grown 50% over the past three years, thus indicating the management’s
drive towards a strong operational improvement.
On the new malls front, Phoenix Palassio is ~85% leased out at an average
lease rate of | 105/sq ft per month. Fit-outs are in progress and the mall is
set to be operational in Q4FY20E. PMC Indore has achieved ~60% leasing
as of Q3FY20. The mall is expected to open 12-15 months after Palassio
commences operations. With this and with more than 16-24% space coming
up for renewals at several malls in FY21E, we expect retail rental income to
grow at a CAGR of 16.1% to | 2,088.7 crore in FY19-24E.
Fountainhead-Tower 2&3 to commence leasing in H1FY21E
Commercial business revenues grew 2.1% YoY to | 33.4 crore in Q3FY20.
PML leased Fountainhead-Tower 1 at an average lease rate of | 80/sq ft per
month. Operational commercial assets are near optimum occupancy while
PML has 0.96 msf office assets under development between Fountainhead-
Tower 2&3 & PMC Chennai. Structural work at Fountainhead-Tower 2&3 has
been completed while leasing is expected to commence in H1FY21E.
Addition of these assets would take the total office portfolio to ~3 msf.
Valuation & Outlook
We remain positive on PML given it is a quasi play on India’s consumption
story, quality of assets, healthy balance sheet & strategic expansion plans.
The company is well on track to strongly double its portfolio, going ahead.
We maintain BUY rating with an SoTP based target price of | 1,020/share.
Key Financial Summary
(| Crore) FY17 FY18 FY19 FY20E FY21E CAGR FY19-21E
Net Sales (| crore) 1,824.6 1,619.8 1,981.6 2,020.9 2,295.8 7.6%
EBITDA (| crore) 846.9 777.4 993.2 1,032.4 1,176.8 8.9%
EBITDA margin (%) 46.4 48.0 50.1 51.1 51.3
Adj. Net Profit (| crore) 167.9 242.2 372.9 324.4 392.5 2.6%
Adj. EPS (|) 11.0 15.8 24.4 21.2 25.6
P/E (x) 80.4 55.8 32.1 40.7 34.4
EV/EBITDA (x) 20.1 21.6 17.4 16.9 15.0
Price / Book (x) 6.3 4.7 3.9 3.5 3.2
RoCE (%) 11.0 8.8 9.6 8.2 8.7
RoE (%) 7.8 8.5 10.7 8.5 9.2
Source: Company, ICICI Direct Research
Particulars
Particular Amount (| crore)
Market Capitalization 13,507.1
Total Debt 4,546.9
Cash 284.2
EV 17,769.8
52 week H/L (|) 913 / 564
Equity capital 30.7
Face value | 2
Key Highlights
Rental income grew 8% YoY to
| 277.7 crore in Q2FY20
Fit-outs at PMC Lucknow (Phoenix
Palassio) are under way and the mall
is set to be operational in Q4FY20E
Expect rental income growth at
16.1% CAGR to | 2,088.7 crore in
FY19-24E
Maintain BUY with a target price of
| 1,020/share
Research Analyst
Bhupendra Tiwary, CFA
Harsh Pathak
ICICI Securities | Retail Research 2
ICICI Direct Research
Result Update | Phoenix Mills
Exhibit 1: Variance Analysis
Q3FY20 Q3FY20E Q3FY19 YoY (Chg %) Q2FY20 QoQ (Chg %) Comments
Income from Operation 511.8 479.5 440.4 16.2 415.1 23.3Core portfolio revenues grew 10.3% YoY to | 463.7
crore
Other Income 13.3 15.0 17.0 -21.8 19.5 -31.7
Total raw material Expenses 32.3 24.0 21.3 51.8 11.9 171.0
Employee cost 52.1 47.9 45.9 13.5 39.8 30.8
Other expenditure 129.0 119.9 110.5 16.8 110.2 17.1
EBITDA 259.3 239.7 222.5 16.6 210.8 23.0
EBITDA Margin (%) 50.7 50.0 50.5 15 bps 50.8 -11 bps
Depreciation 51.4 50.9 52.3 -1.6 50.9 1.0
Interest 88.9 87.8 91.7 -3.0 87.8 1.3
PBT 132.3 116.0 95.5 38.5 99.3 33.2
Taxes 35.8 34.8 17.5 104.5 35.0 2.2
Reported PAT 91.9 81.2 70.8 29.7 65.8 39.6Core portfolio PAT (excluding residential business)
grew at a strong 47.2% YoY to | 83.3 crore in Q3FY20
Source: Company, ICICI Direct Research
Exhibit 2: Change in estimates
FY19 FY20E FY21E
(| Crore) Old New % Change Old New % Change Comments
Revenue 1619.8 1981.6 2024.3 2020.9 -0.2 2,214.1 2295.8 3.7 We tweak our estimates
EBITDA 777.4 993.2 1038.7 1032.4 -0.6 1,149.6 1176.8 2.4
EBITDA Margin (%) 48.0 50.1 51.3 51.1 -22 bps 51.9 51.3 -64 bps
PAT 242.2 421.0 342.6 332.2 -3.0 379.4 392.5 3.5
EPS (|) 15.8 27.5 22.4 21.7 -3.0 24.7 25.6 3.5
FY18
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 3
ICICI Direct Research
Result Update | Phoenix Mills
Conference call Highlights
Management commentary: PML reported retail rental income growth of
8% YoY to | 277.7 crore mainly driven by PMC Bengaluru, PMC Pune,
PMC Mumbai and HSP & Palladium. Overall, operational malls reported
strong overall consumption growth of 10% YoY to | 2,067.2 crore in
Q3FY20 on the back of the festive months of October and December,
2019, which is encouraging. Overall consumption in Q3FY20 was driven
by multiplex/entertainment, cosmetics/footwear segments, which
reported 19%, 16% YoY growth, respectively, during the quarter. Also,
PML has seen strong consumption growth of 8-12% YoY in January,
2020. On the mall space renewals front, 21% space at HSP & Palladium
is under renewal in FY20E, of which 15-16% space is complete at MG
rate of ~20%, higher than the last transacted rate. Furthermore, 16-24%
space is coming up for renewal at several malls in FY21E. This could
help PML lease the spaces at higher rates, going ahead
Mall performance key highlights: Leading malls in PML’s portfolio
reported strong growth in trading density in Q3FY20 with HSP &
Palladium, PMC Bengaluru, PMC Pune, PMC Mumbai reporting 13%,
11%, 11%, 9% trading density growth, respectively, in Q3FY20. HSP &
Palladium recorded trading density of | 3,620/sq ft per month, which is
among the highest in India. PMC Bengaluru’s trading density was at
| 2,085/sq ft per month, thus being the first MarketCity to cross the
| 2,000/sq ft mark. PMC Mumbai reported trading density at | 1,415/sq
ft per month, thus closing the gap with other malls in the vicinity
Under-development retail assets: Fit-outs at PMC Lucknow (Phoenix
Palassio) are in progress. The mall has been ~85% leased out at an
average lease rate of | 105/sq ft per month It is set to be operational in
Q4FY20E. Palassio’s total cost is at ~| 720 crore (including land cost).
At PMC Indore, leasing has commenced and has achieved ~60% leasing
as of Q3FY20. The mall is expected to open 12-15 months after Palassio
commences operations. Furthermore, the company expects PMC
Hebbal (just launched) and PMC Wakad each to be ~40% pre-leased by
the next two quarters. Construction at all these retail assets is going as
per schedule. Furthermore, the management has stuck to its guidance
of adding 1 msf mall space to its portfolio every year post FY24E
Commercial portfolio: Commercial business revenues grew 2.1% YoY
to | 33.4 crore in Q3FY20. PML leased Fountainhead-Tower 1 at an
average lease rate of | 80/sq ft (ex. CAM) per month. The company has
0.96 msf office portfolio under development between Fountainhead –
Tower 2&3 (0.54 msf) and at Phoenix MarketCity, Chennai (0.42 msf).
Structural work at Fountainhead – Tower 2&3 is complete while the
leasing is expected to commence in H1FY21E. Overall, these assets are
expected to be ready for fit-outs in the next three quarters
Capex: PML incurred | 170 crore capex towards the under construction
assets (retail & commercial) in Q3FY20 (| 432 crore incurred in 9MFY20).
The company is expected to incur capex worth | 700-750 crore in FY21E
Residential business: PML clocked | 48.1 crore residential revenues in
Q3FY20. Cumulatively 1.28 msf is at OBW, Bangalore and 0.27 msf at
Kessaku as of Q3FY20. In order to increase traction at its residential
properties and to increase sales velocity, the company is taking several
marketing initiatives and expects sales activity to improve ahead
Hospitality portfolio: Hospitality business revenues grew 10.8% YoY to
| 108.5 crore in Q3FY20. On a positive note, The St Regis, Mumbai
reported 84% room occupancy and ARR of | 13,857 in Q3FY20, which
the management says is the life-time high ARR that the asset has
achieved. Furthermore, as per management, St. Regis has highest
RevPAR in its presence area, which is encouraging
ICICI Securities | Retail Research 4
ICICI Direct Research
Result Update | Phoenix Mills
Company Analysis
Exhibit 3: Retail income trend
Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20
YoY
Growth
(%)
QoQ
Growth
(%)
Avg Rental rate (|/ sq ft pm)
HSP & Palladium 403.0 392.0 406.0 383.0 413.0 2.5 7.8
PMC Mumbai 99.0 97.0 101.0 102.0 108.0 9.1 5.9
PMC Bangalore 124.0 118.0 124.0 126.0 138.0 11.3 9.5
PMC Chennai* 139.0 137.0 139.0 140.0 141.0 1.4 0.7
PMC Pune 123.0 116.0 125.0 124.0 136.0 10.6 9.7
Rental Income (| crore)
HSP & Palladium 88.6 86.8 88.1 87.9 94.6 6.8 7.6
PMC Mumbai 31.1 31.0 32.3 32.0 33.9 9.0 5.9
PMC Bangalore 36.1 34.7 35.9 36.0 40.0 10.8 11.1
PMC Chennai* 38.8 38.4 39.4 47.5 48.2 24.2 1.5
PMC Pune 41.6 40.6 43.2 42.7 45.8 10.1 7.3
Source: Company, ICICI Direct Research
Exhibit 4: Commercial portfolio
Office Location
Total
Area
(msf)
Area
Sold(msf)
Net Leasable
Area (msf)
Area
Leased
(msf)
Average
Rate
(|/sq ft.)
Operational
Phoenix Paragon Plaza Mumbai 0.41 0.12 0.29 0.21 117
The Centrium Mumbai 0.28 0.16 0.12 0.08 NA
Art Guild House Mumbai 0.80 0.20 0.60 0.55 101
Phoenix House Mumbai 0.10 - 0.10 0.07 NA
Fountainhead - Tower 1 Pune 0.17 - 0.17 0.16 74
Total Operational 1.76 0.48 1.28 1.07
Source: Company, ICICI Direct Research
Exhibit 5: Hospitality portfolio
Hotel Location Keys Occupancy
Avearge
room rate
per day (|)
Revenue from
Rooms Q3FY20
(| crore)
Total Revenues
Q3FY20
(| crore)
The St. Regis Mumbai 395 84% 13,857 42.2 96.2
Courtyard by Marriot Agra 193 77% 4,919 6.6 12.4
Source: Company, ICICI Direct Research
Exhibit 6: Residential portfolio
Project Location
Total Area
(msf)
Area
Launched
(msf)
Area Sold
(msf)
Sales Value (|
crore)
Collectionsin
Q3FY20
(| Crore)
Revenues Recognized
Cummulative (| crore)
OBW Bengaluru 2.2 1.61 1.28 1,230.6 14.2 1,230.6
Kessaku Bengaluru 0.99 0.52 0.27 367.2 28.5 367.2
Total 3.21 2.13 1.55 1,597.80 42.70 1,597.80
Source: ICICI Direct Research, Company
ICICI Securities | Retail Research 5
ICICI Direct Research
Result Update | Phoenix Mills
Exhibit 7: Under construction portfolio
Project Partnership/JV/OwnedDevelopment
Potential
Comments
PMC Wakad,
Pune
ISML - alliance with CPPIB (PML Stake:
51%)
1.6 msf
(1.1 msf retail)
All approvals received. Construction commenced in Feb 2019;
Excavation is complete at end of December 2019, foundation work
is on. Basement slabs are being cast
PMC Hebbal,
Bengaluru
ISML - alliance with CPPIB (PML Stake:
51%)
1.8 msf
(1.2 msf retail)
All approvals received. Construction commenced in Feb 2019;
Excavation is complete at end of December 2019, foundation work
is on. Basement slabs are being cast
PMC Indore
ISML - alliance with CPPIB (PML Stake:
51%) 1.0 msf retail All approvals received, construction commenced in June 2019
Palladium,
Ahmedabad 50:50 JV with BSafal group 0.7 msf retail
Construction in Progress. Excavation is complete and foundation
work is on
PMC Lucknow 100% Owned 0.9 msf retail Construction is complete. Fit-outs is in progress. Operations to
commence in Q4FY20E
Total6 msf
(4.9 msf retail)
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 6
ICICI Direct Research
Result Update | Phoenix Mills
Financial story through charts
Exhibit 8: Revenues trend
1,193
1,053
1,163
1,262
1,473
63
63
70
97
131
284
315
342
373
396
256
186
375
288
295
- 500 1,000 1,500 2,000 2,500
FY17
FY18
FY19
FY20E
FY21E
(| crore)Retail Commercial Hospitality Residential
Source: Company, ICICI Direct Research
Exhibit 9: EBITDA and EBITDA margin trend
847 777 993 1,032 1,177
46.4
48.0
50.1 51.1 51.3
40
44
48
52
56
60
-
250
500
750
1,000
1,250
FY17 FY18 FY19 FY20E FY21E
(%
)
(| crore)
EBITDA EBITDA Margin
Source: Company, ICICI Direct Research
Exhibit 10: PAT trend
168 242 421 332 393
9.2
15.0
21.2
16.4 17.1
-
4
8
12
16
20
24
50
150
250
350
450
FY17 FY18 FY19 FY20E FY21E
(%
)
(| crore)
Net Profit Net Profit Margin
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 7
ICICI Direct Research
Result Update | Phoenix Mills
Valuation & Outlook
We remain positive on PML given its quality of retail and commercial assets,
healthy balance sheet, strategic expansion plans ahead and quasi play on
India’s consumption story. We note that the company has reported strong
trading density growth in Q3FY20. Moreover, Phoenix Palassio is set to be
operational in Q4FY20E while ~85% area at the mall has been leased at
~105/sq ft per month, which implies rental yield of 15-16% from first year of
operations, which is encouraging. Furthermore, 16-24% retail space is
coming up for renewal in FY21E at leading assets in its portfolio, which
makes a case for a strong mark up in its rental rates. Taking cues from these
levers, we build in a strong increase in rental income, going ahead.
Accordingly, we expect rental income to increase at 16.1% CAGR to
| 2,088.7 crore in FY19-24E. We maintain BUY rating on the stock with an
SoTP based target price of | 1,020/share.
Exhibit 11: Valuation
Type ParametersGAV
(| crore)
Debt
(| crore)
NAV
(| crore)
PML Value
(| crore)
Value/ share (|/
share)
Retail Leasable area (msf)
Retail Operational 5.9 14522 3407 11115 8979 563
Retail under construction 4.5 4797 1231 3565 2221 139
Retail Total 10.4 19,319 4,639 14,680 11,201 702
Commercial Leasable area (msf)
Commercial Operational 1.0 1529 117 1412 1412 89
Commercial under construction 1.8 1226 0 1226 1120 70
Commercial Total 2.8 2,756 117 2,639 2,532 159
Hospitality No of keys
Hospitality Total 588 3,043 546 2,497 1,935 121
Residential Saleable area (msf)
Residential Total 3.7 897 165 732 578 36
Grand Total 17.0 26,014 20,548 16,246 1,018
Rounded Off target price 1,020
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 8
ICICI Direct Research
Result Update | Phoenix Mills
Exhibit 12: Recommendation History vs. Consensus
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
0
100
200
300
400
500
600
700
800
900
1,000
Feb-20Nov-19Aug-19May-19Feb-19Nov-18Aug-18May-18Mar-18Dec-17Sep-17Jun-17Mar-17
(%
)(|)
Price Idirect target Consensus Target Mean % Consensus with BUY
Source: Bloomberg, Company, ICICI Direct Research
Exhibit 13: Top 10 Shareholders
Rank NameLatest Filing
Date
% O/S Position (m) Change (m)
1 Ruia International H 30-Jun-19 32.17 49.3 0.0
2 Senior Advisory Serv 30-Jun-19 10.10 15.5 0.0
3 Radhakrishna Ramnara 30-Jun-19 7.61 11.7 0.0
4 Ashok Apparels Pvt L 30-Jun-19 6.30 9.7 0.0
5 Tt International Inv 30-Sep-19 5.35 8.2 1.1
6 Nordea Bank Apb 31-Dec-19 4.40 6.7 -0.2
7 Schroders Plc 30-Jun-19 3.30 5.1 0.2
8 Ruia Atul Ashokkumar 30-Jun-19 2.58 4.0 1.6
9 Fmr Llc 31-Dec-19 2.26 3.5 0.0
10 Na 30-Jun-19 2.19 3.4 1.2
Source: Reuters, ICICI Direct Research
Exhibit 14: Shareholding Pattern
(in %) Dec-18 Mar-19 Jun-19 Sep-19 Dec-19
Promoter 62.8 62.8 62.8 59.2 59.1
Public 37.2 37.2 37.3 40.8 40.9
Others 0.0 0.0 0.0 0.0 0.0
Total 100.0 100.0 100.0 100.0 100.0
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 9
ICICI Direct Research
Result Update | Phoenix Mills
Financial summary
Exhibit 15: Profit and loss statement | crore
| crore FY18 FY19 FY20E FY21E
Net Sales 1,619.8 1,981.6 2,020.9 2,295.8
Other Income 55.6 85.1 76.6 76.4
Total revenues 1,675.4 2,066.7 2,097.4 2,372.3
Raw Material Expenses 131.9 218.9 223.2 253.6
Employee Cost 147.3 161.5 164.7 187.1
Other Expenditure 563.2 608.0 600.6 678.3
Total Operating Expenditure 842.4 988.4 988.5 1,119.1
EBITDA 777.4 993.2 1,032.4 1,176.8
Interest 347.6 350.6 357.2 383.1
Depreciation 198.3 204.2 244.3 256.1
PBT 287.1 571.6 499.6 613.9
Tax 75.8 109.9 139.9 184.2
Reported PAT 242.2 421.0 332.2 392.5
EPS (|) 15.8 27.5 21.7 25.6
Source: Company, ICICI Direct Research
Exhibit 16: Cash flow statement | crore
| crore FY18 FY19 FY20E FY21E
Profit after Tax 242.2 421.0 332.2 392.5
Depreciation 198.3 204.2 244.3 256.1
Interest paid 347.7 350.6 357.2 383.1
Cash Flow before wc changes 793.1 1,005.6 1,101.1 1,253.2
Net Increase in Current Assets 175.9 (465.7) 2.8 (173.7)
Net Increase in Current Liabilities 569.6 (251.8) (88.1) 78.6
Net cash flow from op. activities 1,517.7 207.7 876.0 974.0
Purchase of Fixed Assets (1,501.5) (1,464.5) (755.4) (838.6)
(Purchase)/Sale of Investments (1,732.4) (1,234.4) - -
Net cash flow from inv. activities (1,824.9) (1,251.6) (725.7) (804.8)
Proceeds from Long Term Borrowings 1,635.6 420.5 791.7 473.1
Interest paid (351.6) (332.9) (357.2) (383.1)
Net cash flow from fin. activities 277.4 1,052.7 453.8 116.1
Net Cash flow (29.8) 8.8 604.0 285.2
Opening Cash 64.1 30.8 192.0 801.9
Closing Cash 40.6 39.6 801.9 1,087.2
Source: Company, ICICI Direct Research
Exhibit 17: Balance sheet | crore
| crore FY18 FY19 FY20E FY21E
Equity Capital 30.6 30.7 30.7 30.7
Reserves & Surplus 2,821.1 3,443.5 3,795.0 4,213.7
Networth 2,851.7 3,474.1 3,825.6 4,244.3
Total Debt 3,666.5 4,243.5 5,035.2 5,508.3
Other financial liabilities 190.2 176.4 387.6 377.4
Deferred Tax Liability 0.2 0.3 0.3 0.3
Source of Funds 7,175 9,118 10,529 11,482
Gross Block 6,324.2 7,370.4 7,404.0 7,533.8
Less: Accumulated Dep 1,030.3 1,221.5 1,472.0 1,728.2
Net Block 5,293.9 6,148.9 5,932.0 5,805.6
Capital WIP 502.5 896.0 1,617.8 2,326.5
Total Fixed Assets 5,796.4 7,044.9 7,549.8 8,132.2
Investments 497.8 472.2 472.2 472.2
Inventories 661.5 898.6 885.9 974.9
Trade Receivables 129.2 195.5 199.4 226.5
Loans & Advances 31.6 21.2 21.6 24.6
Cash & Bank Balances 40.6 192.0 801.9 1,087.2
Other Current Assets 250.3 285.8 291.4 345.9
Total Current Assets 1,444.4 1,865.9 2,473.0 2,932.0
Trade Payable 109.5 147.7 145.1 164.8
Provisions 104.3 63.0 110.7 119.5
Other Current Liabilities 1,108.7 787.3 442.9 503.2
Total Current Liabilities 1,322.4 998.0 698.8 787.6
Net Current Assets 121.9 867.9 1,774.3 2,144.4
Application of Funds 7,175 9,118 10,529 11,482
Source: Company, ICICI Direct Research
Exhibit 18: Key ratios
| crore FY18 FY19 FY20E FY21E
Per Share Data
Reported EPS 15.8 27.5 21.7 25.6
Cash EPS 28.8 40.8 37.6 42.4
BVPS 186.2 226.9 249.8 277.2
Operating Ratios
EBITDA / Net Sales 48.0 50.1 51.1 51.3
PAT / Net Sales 15.0 18.8 16.1 17.1
Return Ratios
RoE 8.5 10.7 8.5 9.2
RoCE 8.8 9.6 8.2 8.7
RoIC 10.7 11.5 11.3 13.3
Valuation Ratios
EV / EBITDA 21.6 17.4 16.9 15.0
P/E 55.8 32.1 40.7 34.4
EV / Net Sales 10.4 8.7 8.6 7.7
Market Cap / Sales 8.3 6.8 6.7 5.9
Price to Book Value 4.7 3.9 3.5 3.2
Turnover Ratios
Asset turnover 0.2 0.2 0.2 0.2
Gross Block Turnover 0.2 0.3 0.3 0.3
Solvency Ratios
Net Debt / Equity 1.2 1.1 1.0 1.0
Current Ratio 0.8 1.4 2.0 2.0
Quick Ratio 0.3 0.5 0.7 0.8
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 10
ICICI Direct Research
Result Update | Phoenix Mills
Exhibit 19: ICICI Direct coverage universe (Real Estate)
CMP M Cap
(|) TP(|) Rating (| Cr) FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E
Oberoi Realty (OBEREA) 520 580 Hold 18,907 22.5 16.4 24.9 22.2 30.5 20.0 14.2 18.8 14.6 2.4 2.2 2.0 10.1 6.9 7.9
The Phoenix Mills (PHOMIL) 882 1,020 Buy 13,507 24.4 21.2 25.6 32.1 40.7 34.4 17.4 16.9 15.0 3.9 3.5 3.2 10.7 8.5 9.2
Brigade Enterprises (BRIENT) 236 275 Buy 4,281 11.7 9.6 4.7 20.1 24.7 50.3 10.5 10.9 10.3 2.2 2.2 2.1 11.1 8.9 4.3
P/E (x)
Sector / Company
EPS (|) EV/EBITDA (x) P/B (x) RoE (%)
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 11
ICICI Direct Research
Result Update | Phoenix Mills
RATING RATIONALE
ICICI Direct endeavors to provide objective opinions and recommendations. ICICI Direct assigns ratings to its
stocks according to their notional target price vs. current market price and then categorizes them as Buy, Hold,
Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined
as the analysts' valuation for a stock
Buy: >15%
Hold: -5% to 15%;
Reduce: -15% to -5%;
Sell: <-15%
Pankaj Pandey Head – Research [email protected]
ICICI Direct Research Desk,
ICICI Securities Limited,
1st Floor, Akruti Trade Centre,
Road No 7, MIDC,
Andheri (East)
Mumbai – 400 093
ICICI Securities | Retail Research 12
ICICI Direct Research
Result Update | Phoenix Mills
ANALYST CERTIFICATION
I/We, Bhupendra Tiwary, CFA, MBA (Finance), Harsh Pathak, MBA (Finance), Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately
reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. It is also confirmed
that above mentioned Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months and do not serve as an officer, director or employee of the companies
mentioned in the report.
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