Phoenix Mills Boosts Commercial Real Estate Portfolio with 1.90 Lakh Sq. Ft. Leased Space
Business and Industry Overview:
The Phoenix Mills Ltd is a real estate company in India. It started in 1905. Mr. Ramnarayan Ruia started it. At first, it was a textile company in Mumbai. In 1959, Phoenix Mills was listed on the BSE. In 1986, two commercial buildings were opened. Their names were Phoenix House and Phoenix Center. These buildings had a total area of 3.5 lakh sq. ft. In 1987, the company started High Street Phoenix (HSP). It had shops, offices, houses, and fun places. It became the company’s main project. In 1996, Phoenix started the biggest bowling and gaming center in India. In 2001, it opened Big Bazaar at HSP. Big Bazaar was India’s first hypermarket. In 2002, Phoenix built its first residential towers on its land. In 2004, the company started Skyzone. It had many national and international brand stores. In 2005, Phoenix celebrated 100 years. In 2009, it launched East Court, a commercial building in Pune. In 2010, the company opened Palladium Mall in Mumbai. It was a luxury mall. In 2011, it opened three Phoenix Marketcities. These were in Pune, Bengaluru, and Kurla. In 2012, Phoenix opened many new places. It opened the Palladium Hotel in Mumbai, a 5-star hotel. It also opened Art Guild House and Phoenix Paragon Plaza. In Bengaluru, it built One Bangalore West, a 30-storey luxury tower. In 2013, the company opened Phoenix Marketcity in Chennai. In 2014, it started a new business in food and beverages. In 2015, Palladium Hotel became St. Regis Mumbai. The same year, Phoenix started Kessaku, luxury homes in Bengaluru. It also opened Courtyard by Marriott, a 5-star hotel in Agra. In 2024, the company started a new company called Sparkle Three Mall Developers. It will help to build more malls. As of April 2025, the stock price of Phoenix Mills is around ₹2,812. It is listed on NSE with the symbol PHOENIXLTD. Phoenix Mills has many malls in Mumbai, Bangalore, Pune, Chennai, Lucknow, Agra, and Bareilly. It builds malls, homes, hotels, and offices. One of its famous places is High Street Phoenix in Mumbai.
Latest Stock News:
As of April 10, 2025, the share price of The Phoenix Mills Ltd is ₹1,495.80. It fell by 4.87% from the last price of ₹1,572.35. On April 7, 2025, the stock went down by 3.23%. This was the third day in a row the stock went down. Still, it did better than many other companies in the same sector. On April 3, 2025, the Nifty Realty Index went up by 3%. Phoenix Mills was one of the companies that helped in this rise. This happened because people expect the RBI to cut interest rates. Also, property prices are going up. In Q2 of FY2025, Phoenix Mills reported a fall in profit. Its net profit was ₹218.1 crore. This is 13.7% less than last year. After this news, the share price dropped by over 7%. On March 27, 2025, the company said it was closing its trading window. On March 26, 2025, it shared details from meetings with investors and analysts. On April 9, 2025, the stock dropped by 2.31% and touched a low of ₹1,534.40. This happened after the company gave a business update. Phoenix Mills said that its mall consumption (sales by retailers) in the March quarter was ₹3,262 crore. This is 15% more than last year. The main sales came from Phoenix Palassio and new malls: Phoenix Mall of the Millennium, Phoenix Mall of Asia, and Phoenix Palladium Expansion. These malls opened in September 2023, October 2023, and November 2024. For the full year FY2025, mall consumption was ₹13,762 crore. This is 21% higher than last year. If we remove the new malls, the growth is 7% year-on-year. The company also leased out 1.90 lakh square feet of office space in Mumbai and Pune. The occupancy rate in these places was 66% in March 2025. The company also got Occupation Certificates (OC) for two new towers: Phoenix Asia Towers in Bangalore (0.80 million sq. ft.) and Tower 3 of Millennium Towers in Pune (0.52 million sq. ft.). The hotel business also did well. In the March quarter, The St. Regis, Mumbai had 92% occupancy. The average room rate (ARR) was ₹23,542, up 11% from last year. In Courtyard by Marriott, Agra, occupancy was 87%. ARR was ₹6,977, up 10% from last year. At 9:26 AM on April 9, the share price was ₹1,545, down 1.60%. It did worse than the BSE200 index, which was down 0.58%.
Potentials:
The Phoenix Mills Ltd has made strong plans for growth in the next few years. The company wants to increase its total mall area from 11 million square feet to 14 million square feet by the year 2027. This means they will build more malls in big cities. Two important new malls are Phoenix Mall of Asia in Bengaluru and Phoenix Grand Victoria in Kolkata. The company also wants to add more office space. They plan to build 5 million square feet of office space by 2027. This will help them grow in the commercial real estate market. In the residential segment, Phoenix Mills is growing too. They have bought new land in Alipore (Kolkata) and Bengaluru. These lands will be used to build houses. This will add about 1 million square feet of housing area. Phoenix Mills is also expanding its hotel business. A new five-star hotel called Grand Hyatt Bengaluru is being built. This hotel will have 488 rooms. It will be a part of the company’s luxury hospitality segment. In Thane, the company is working on a big project at Majiwada Junction. This project will cover 1.5 million square feet. It will have a large shopping mall, a hotel, office spaces, and maybe residential buildings too. The new mall is planned to open by 2028. To support all these big plans, Phoenix Mills will invest over ₹2,000 crore. This investment will be used in cities like Pune, Bengaluru, Surat, and Kolkata. The company will use its own money (called internal accruals) for this investment.
Analyst Insights:
- Market capitalisation: ₹ 53,478 Cr.
- Current Price: ₹ 1,496
- 52-Week High/Low: ₹ 2,068 / 1,338
- P/E Ratio: 51.8
- Dividend Yield: 0.17%
- Return on Capital Employed (ROCE): 12.4%
- Return on Equity (ROE): 12.1%
Phoenix Mills Ltd is showing strong growth. Its revenue increased from ₹1,460 crore in FY22 to ₹3,972 crore in FY24. Net profit also went up to ₹1,333 crore in FY24. The company is good at controlling costs. Its profit margins are high, above 50%. This means the company keeps a good part of its earnings. It has ₹9,422 crore in reserves and ₹6,166 crore in debt. This shows the company is financially strong. It can easily pay interest on loans. Its Return on Capital Employed (ROCE) is 12.4%, which is better than DLF (7.48%), Prestige (8.7%), and Brigade (5.4%). This means it uses its money better than others. Foreign investors trust this company. FIIs hold 35.66% of its shares. But the stock is expensive. Its P/E ratio is 51.8 times, and its price-to-book ratio is 5.35 times. This means the market price is high compared to earnings and book value. Also, the company takes 654 days to convert cash from operations. This is very long. It means a lot of money is stuck in the business. So, the company is strong. But the stock price is already high. Because of this, it is better to hold the stock now and wait. You can buy later if the price becomes better or the profit grows more.