Phoenix Mills marks new ATH on improved Q4 business update and optimistic global brokerages

Shares of the real estate developer in early trade marked a fresh all-time high for the second consecutive day today (April 12, 2024) after the company’s Q4 business update released post-market hours on Wednesday and bullish calls by global brokerages.

At the day's high, the stock scaled levels of Rs 3125, up over 3 per cent over the previous day.

The company in its Q4 business update said total consumption came in at Rs 11,327 crore, a 22 per on year growth over FY23. Also, the gross retail collections came in higher at Rs 2,743 crore, up 27 per cent on year.

Global brokerages view on the stock post Q4 update

Hong Kong based brokerage CLSA has reiterated its outperform view on the stock with a raised target of Rs 3403 as against the earlier set target of Rs 2825. The new target implies a potential gain of over 12 per cent.

The brokerage held that consumption at the company has revived to high single digit.

Phoenix Mills reported same-store consumption growth at malls of 8.5% YoY in 4QFY24, the brokerage added. Its other businesses performed well, too.

Revival in SS growth allays concerns over weak SS growth in 3QFY24 (4% YoY).

The brokerage estimates revenue and earnings CAGR of 16 per cent  and 25 per cent, over FY24-27CL.

Likewise, another global brokerage Morgan Stanley maintains an overweight view but with a downside as the target is set at Rs 3000. The same store consumption came in higher than consensus which expressed concerns about decelerating consumption growth for mature malls. Same Store (SS) consumption, ex-Indore decelerated from Q3FY24, it noted.

In line with the gains in the broader Nifty Realty pack, Phoenix Mills has delivered multi-bagger returns in the last one year to the tune of 135 per cent.

On the previous trading session, the stock marked its new 52-week high, which is also its all-time high price.

The consensus view on the stock from 16 analysts is a hold with 4 of them suggesting a strong buy, Trendlyne data shows. The one year target for the stock is 2468, signalling a downside of 18 per cent.