Home / Markets / Stock Markets /  Multibagger stock turns 1 lakh to 53 Cr after 1 bonus share: Buy?

With a market valuation of 25,413.12 crore, Phoenix Mills Ltd. is a large-cap company in the consumer discretionary industry. In the Indian real estate market, The Phoenix Mills Ltd. has established itself as a specialist in large shopping malls, entertainment centres, office buildings, and hotels. Mumbai, Bengaluru, Chennai, Pune, Raipur, Agra, Indore, Lucknow, Bareilly, and Ahmedabad are among the cities where the group has a real estate business. Retail, residential, commercial, and hospitality sectors are all included in the company's real estate business strategy. Despite having issued 1 bonus share since the company's founding, converting 1 lakh into 53 crore at the present market price, Phoenix Mills Ltd. shares are among the multibagger stocks.

Share price and bonus share history of Phoenix Mills

The shares of Phoenix Mills ended today's trading session on the BSE at Rs. 1,428, up 3.81% from the previous close of Rs. 1,375.65. The stock had a total volume of 9,579 shares traded on the BSE today, which was lower than the 20-Day average volume of 14,440 shares. From 1.33 on October 13th, 1995, to the current price level, the stock price has skyrocketed, resulting in a massive multibagger return of 107,268.42%. The stock has produced a multibagger return of 173.64% over the past five years and a multibagger return of 101.12% during the past three years. The stock has gained 44.26% over the past year, and it has climbed 46.08% YTD in 2022. The stock had touched a 52-week-high of 1,468.95 on (14/09/2022) and a 52-week-low of 884.30 (08/03/2022), indicating that at the current market price the stock is trading 2.78% below the high and 61.48% above the low. For the quarter that ended June 2022, the company recorded a promoter shareholding of 47.32%, FIIs holding of 31.60%, DIIs holding of 16.68% and public shareholding of 4.40%.

If someone had invested Rs. 1 lakh in the inception, when the stock price was Rs. 1.33 a piece, he would have received a shareholding of 75,187 shares in the company. However, according to data accessible on BSE, the company declared its first bonus share on December 9th, 2005, at a 4:1 ratio. Your stake would have climbed from 75,187 to 375,935 shares after the bonus was issued. This indicates that your overall stake would have been worth 53.68 Cr at the current market price of 1,428.

Should you buy the shares of Phoenix Mills?

The research analysts of the broking company ICICI Securities Limited have said today in a report that “The Phoenix Mills’ (PHNX) FY21 and FY22 operations were impacted by mall shutdowns across India owing to successive Covid waves. In FY22, like-to-like mall consumption was at 64% of FY20 levels with LTL rental income at 72% of FY20 levels (including spill over from FY21). However, with waning Covid impact, in Q1FY23 (Apr-Jun’22), LTL consumption across malls stood at Rs19.8bn or 111% of Apr-Jun’19 (Q1FY20) levels which translated into Q1FY23 retail LTL EBITDA of Rs2.9bn or 115% of Q1FY20 levels. Similarly, in Q2FY23, Aug’22 (LTL) consumption across malls has come in at 114% of Aug’19 levels with Jul’22 LTL consumption at 120% of Jul’19 levels. Owing to continued consumption strength, we model for FY23E rental income of Rs13.7bn (Rs12.2bn on LTL basis vs. Rs10.3bn in FY20). With Indore and Ahmedabad malls to open in FY23E and Pune (Wakad) and Bengaluru (Hebbal) in FY24E, we expect 17% rental income CAGR over FY20-25E."

They further added that “We reiterate our BUY rating with a revised target price of Rs1,638/share (earlier Rs1,645) based on 20% premium to our Mar’23E NAV of Rs1,371/share which includes increase in Palladium, Mumbai leasable area and considers growth opportunities from new office capex and new malls (including Surat). Key risks to our call are a fresh Covid wave impacting mall consumption and fall in mall occupancies and rentals."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

 

ABOUT THE AUTHOR

Vipul Das

Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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