From Rs 50 to 50x: This realty company generated an exceptional return for its shareholders

Phoenix Mills Limited is engaged in the operation and management of malls, construction of commercial and residential properties, as well as hotel business in India. The company’s stocks have generated exceptional wealth for their shareholders. Today, stocks have touched a significant milestone of Rs 2,500 each.

At the start of the day’s trading session, the stock opened at Rs 2,378.85 per share, indicating an approximate 1% increase compared to the previous day’s closing figure of Rs 2,362.65 per share on the BSE. As of the time of writing this article, the shares are currently at Rs 2,511.90 per share on the BSE.

Furthermore, the company’s stock has reached a significant milestone of Rs 2,500 for the first time today. Back in the year 2008, when the markets experienced a significant downfall, the stock was available at around Rs 50 per share. From this low point, the company never looked back and showcased robust strength. Today, it has reached Rs 2,500, representing an impressive multibagger return of 4,900%. If someone had invested Rs 1 lakh in this company, it would be valued at Rs 50 lakh.

The company’s current market capitalisation stands at Rs 44,590 crore, and the stock has generated an impressive return of 75% during the past one year and around 230% return in the past three years.

Financial Performance

In the second quarter of FY24, the company reported revenues of Rs 875 crore, reflecting a growth of 34.40% YoY compared to the same quarter in the previous year, when the revenue stood at Rs 651 crore. The company posted an operating profit of Rs 506 crore for the quarter, in contrast to an operating profit of Rs 381 crore in the corresponding quarter of the previous year.

Furthermore, the company reported a net profit of Rs 305 crore, compared to a net profit of Rs 222 crore in the same period last year. The company’s net profit has significantly grown around 38% YoY this quarter. The company’s ROCE and ROE ratios are 9.94% and 11.40% respectively, while the stock is trading at a PE of 50.5 times in the market.

In terms of ownership, the Promoter holds 47.29%. The FIIs and DIIs hold 30.01% and 18.51%, respectively, while the remaining 4.18% is held by public investors as per the most recent update.

Peers Comparison:

About the company

Phoenix Mills Limited is an India-based real estate development company. The company is engaged in the development and leasing of commercial and retail space. It operates in two segments: Property and related services, and Hospitality.

The property and related services segment provides mall, and office areas on a license basis and is involved in the development of commercial and residential properties. The Hospitality segment operates hotels and restaurants. Its retail projects include Phoenix Palladium in Mumbai, Phoenix Marketcity in Pune, Phoenix Mall of the Millennium in Pune, and Palladium in Chennai. Its commercial projects comprise Art Guild House and Phoenix House in Mumbai, The Centrium in Mumbai, Fountainhead Tower 1, Fountainhead Tower 2, and Fountainhead Tower 3 in Pune. Regarding hospitality, it operates The St. Regis in Mumbai and Courtyard by Marriott in Agra. Its residential projects encompass One Bangalore West and Kessaku in Bangalore.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.