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PHOENIXLTD - Fundamental Analysis: Financial Health & Valuation

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Rating: 2.9

Last Updated Time : 02 Feb 26, 01:19 pm

Fundamental Rating: 2.9

Stock Code PHOENIXLTD Market Cap 58,749 Cr. Current Price 1,641 ₹ High / Low 1,993 ₹
Stock P/E 201 Book Value 151 ₹ Dividend Yield 0.15 % ROCE 6.50 %
ROE 5.52 % Face Value 2.00 ₹ DMA 50 1,776 ₹ DMA 200 1,675 ₹
Chg in FII Hold 0.40 % Chg in DII Hold -0.21 % PAT Qtr 63.8 Cr. PAT Prev Qtr 129 Cr.
RSI 23.5 MACD -40.6 Volume 1,78,111 Avg Vol 1Wk 6,50,728
Low price 1,402 ₹ High price 1,993 ₹ PEG Ratio 7.60 Debt to equity 0.13
52w Index 40.3 % Qtr Profit Var 14.4 % EPS 7.48 ₹ Industry PE 30.2

📊 Core Financials

  • Revenue & Profitability: Quarterly PAT dropped from ₹129 Cr. to ₹63.8 Cr., showing significant decline. EPS at ₹7.48 remains weak relative to price.
  • Return Metrics: ROE at 5.52% and ROCE at 6.50% highlight low capital efficiency.
  • Debt Position: Debt-to-equity ratio at 0.13 indicates low leverage, ensuring balance sheet stability.
  • Cash Flow: Dividend yield at 0.15% is negligible, offering minimal shareholder returns.

💹 Valuation Indicators

  • P/E Ratio: 201, extremely high compared to industry average of 30.2, indicating severe overvaluation.
  • P/B Ratio: Current Price ₹1,641 vs. Book Value ₹151 → ~10.9, trading at a steep premium.
  • PEG Ratio: 7.60, very high, reflecting poor growth-adjusted valuation.
  • Intrinsic Value: Current valuation appears speculative; intrinsic value likely far below market price given weak returns.

🏢 Business Model & Competitive Advantage

  • Phoenix Mills Ltd. operates in retail real estate and mall development, benefiting from urban consumption growth.
  • Competitive advantage lies in prime retail assets and established brand in mall management.
  • However, profitability volatility and high valuation multiples undermine long-term attractiveness.

📈 Entry Zone & Long-Term Guidance

  • Entry Zone: Risk-tolerant investors may consider accumulation near ₹1,400–1,500, closer to 52-week low.
  • Long-Term Holding: Suitable only for speculative investors betting on retail real estate growth; fundamentals do not support strong long-term holding at current valuation.

Positive

  • Debt-to-equity ratio at 0.13 ensures low leverage risk.
  • FII holdings increased (+0.40%), showing some foreign investor confidence.
  • RSI at 23.5 indicates oversold condition, potential rebound.

Limitation

  • Quarterly PAT declined sharply from ₹129 Cr. to ₹63.8 Cr.
  • Low ROE (5.52%) and ROCE (6.50%).
  • Extremely high P/E ratio (201) compared to industry average (30.2).
  • Dividend yield

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