Phoenix Mills (PML)’s FY23 Annual Report: A Review

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Phoenix Mills Limited (PML) has released its FY23 annual report, highlighting the company’s strong execution capabilities, significant business growth in new malls, and the healthy growth trajectory of the Indian retail sector.

Strong Execution Capabilities

PML’s retail portfolio has doubled in the last five years, from 5.5 million square feet (msf) in FY19 to 11 msf in FY23. This growth has been driven by the company’s ability to deliver exceptional retail destinations within the specified project timelines and budgeted costs.

In particular, PML’s two new malls in Indore and Ahmedabad commenced operations ahead of schedule and are already generating strong sales. The Indore mall, which was launched in December 2022, has an occupancy rate of 95%, while the Ahmedabad mall, which was launched in February 2023, has an occupancy rate of 90%.

Significant Business Growth in New Malls

The strong performance of PML’s new malls is a testament to the company’s focus on capturing regional discretionary consumption by building dominant consumption centers. The Indore and Ahmedabad malls are located in key growth markets and offer a wide variety of retail, dining, and entertainment options.

Healthy Growth Trajectory for the Retail Sector

The Indian retail sector is expected to grow at a healthy pace in the coming years, driven by rising disposable incomes and increasing urbanization. According to a report by Technopak Advisors, the Indian retail market is expected to reach US$1.3 trillion by 2025.

PML is well-positioned to benefit from this growth, given its strong execution capabilities and focus on regional markets. The company has a strong pipeline of projects that will further expand its retail portfolio, including a mall in Pune that is scheduled to be launched in the third quarter of FY24 and a mall in Bengaluru that is scheduled to be launched in the third quarter of FY25.


We believe that PML’s growth trajectory remains intact, but the stock is currently trading near its fair value. We reiterate our Neutral rating with a target price of INR1,845.

Overall, the FY23 annual report is positive for PML. The company is executing on its growth plans and is well-positioned to benefit from the long-term growth of the Indian retail sector.


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