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PHOENIXLTD - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental 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