ADVERTISEMENT

The Phoenix Mills - Consumption Growth Remains Healthy: ICICI Securities

Surat mall to drive long-term growth.

<div class="paragraphs"><p>A mall. (Source: Marcus Reubenstein /Unsplash</p></div>
A mall. (Source: Marcus Reubenstein /Unsplash

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

ICICI Securities Report

The Phoenix Mills Ltd. clocked Feb-23 like-to-like consumption across malls at 110% of Feb-20 levels.

As per the company, while there were some concerns of a possible demand slowdown in Dec-22, Feb-23 LTL consumption numbers remain strong at 110% of Feb-20 levels (this would have been 2% higher had two stores – Zara and Reliance Digital at Palladium, Mumbai not been shut for renovation; for Jan-23 LTL consumption growth was impacted by 3% for the same reason).

With year-to-date-FY23 (Apr-22 to Feb-23) LTL consumption at 114% of pre-Covid levels (Apr-19 to Feb-20), we model for FY23E rental income of Rs 13.4 billion (Rs 12.0 billion on LTL basis versus Rs 10.3 billion in FY20).

With Indore and Ahmedabad malls opening in Dec-22/Feb-23 respectively and Pune (Wakad) and Bengaluru (Hebbal) in H1 FY24, we expect 17% rental income compound annual growth rate over FY20-25E.

Click on the attachment to read the full report:

ICICI Securities Phoenix Mills Update.pdf
Opinion
South Indian Bank - Revamped Business Model Yielding Positive Results: ICICI Securities

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.