Phoenix Mills shares fell as much as 5% in early trade on Wednesday, after the real estate developer reported double-digit growth in revenue and net profit for the June quarter.
The decline came as investors reacted to mixed brokerage views and concerns around some business segments.
Around 9:27 am, the stock was trading at Rs 1,934.3 on the NSE, down from its previous close of Rs 2,023.2. The Nifty 50, meanwhile, was up about 0.85%.
The company reported a 23.2% year-on-year rise in consolidated net profit to Rs 297 crore for the June quarter, while revenue increased 12.8% to Rs 1,075 crore from Rs 953 crore a year earlier.
Operating performance remained stable, with EBITDA rising 13.5% year-on-year to Rs 641 crore. The EBITDA margin edged up to 59.6% from 59.2% in the year-ago quarter.
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Mixed Brokerages Reviews
Macquarie maintained its 'Outperform' rating on Phoenix Mills with a target price of Rs 2,100, highlighting that the company's rental catch-up is beginning to reflect in earnings.
The brokerage said retail growth during the quarter was driven by higher occupancy at newer malls and stronger revenue-share flows supported by increased consumer spending. It also noted that improving pre-leasing occupancy levels at repositioned malls were an encouraging sign.
However, Macquarie continued to flag concerns over the slow pace of ramp-up in the company's office portfolio.
Morgan Stanley also retained its 'Overweight' rating on the stock with a target price of Rs 2,000.
The brokerage said the company's first-quarter earnings per share missed expectations primarily because of weaker residential revenue. It also pointed to delays in the completion of the PMC Bengaluru expansion project and the Surat project.
While Phoenix Mills delivered healthy growth across key financial metrics and continued to benefit from the resilience of its retail mall business, investors appeared to focus on execution delays and the slower progress in its office and residential segments, keeping pressure on the stock despite the earnings growth.
Shares up 28% in a year
Despite the recent fall in the share price of Phoenix Mills, the stock remained in the green with more than 28% return over a year.
The stock has come under pressure for the past week and declined over 5.8% during the period, including today's fall.
The stock has been trading between Rs 1,402.5 and Rs 2,169.8 per share in the past 52 weeks.
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