The Phoenix Mills Limited

Real Estate — Real Estate - Diversified · NSE

₹1,896.90−₹20.30 (−1.06%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of The Phoenix Mills Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

The Phoenix Mills Limited engages in the operation and management of malls, construction of commercial and residential properties, and hotel business in India. The company operates in three segments: Property and Related Services, Hospitality services, and Residential Business.

IndustryReal Estate - Diversified

SectorReal Estate

Employees2,073

Annual revenue₹4,315 Cr

How does it make money?

Turns over ₹4,315 Cr a year. Of every ₹100 of sales, about ₹28 reaches shareholders as profit, with ₹63 left at the operating level before interest, tax and depreciation. Each of its 2,073 employees supports ₹2.08 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.08 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 11.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE10.3%

What is the outlook?

21 analysts covering the stock expect revenue to grow about 16.6% and earnings to grow about 22.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+16.6%

Est. earnings growth+22.4%

Analysts21

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +66% while net margin moved -45% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+66%

Margin effect-45%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 52.3x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 54.0x
✗ P/B of 6.17x is a steep premium to book

Quality vs. Valuation

Company Quality

65/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

35/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

52.3x

3Y Median

54.0x

40 monthly readings · mean 50.8x · range 24.1x–70.8x

Sector Median

30.2x

median of 3 sector peers

🟡Currently trading close to its 3y median of 54.0x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 73% above the peer median of 30.2x.

vs. its own history

Fair

54.0x median over 40 months · -3%

vs. sector peers

Expensive

30.2x median of 3 peers · +73%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

27.0x

PEG

2.24

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 60.7% to 62.7% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 15.9% to 11.1% — each rupee of shareholder capital earns less than it did.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 60.7% to 62.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹1,029 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 73% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 15.9% to 11.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 14% a year✓ 18.4% CAGR
Latest reported year was 12.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 61%✓ 62.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1,029 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 9%✓ 11.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹67,848 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

52.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.17x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹36.28

Profitable

Profitable on a per-share basis

ROE

11.1%

Moderate

Moderate capital efficiency

ROCE

11.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.37x

Low

Conservative leverage

Revenue Growth (YoY)

12.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

23.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.13%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹1,029 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

38.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

50.8%

Good

Healthy core-business profitability

Net Margin

28.2%

Good

Strong bottom-line conversion

Current Ratio

1.29

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

61%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1906.3 / 1907.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

40.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,601 Cr	₹3,899 Cr	₹3,719 Cr	₹4,315 Cr	+18.4%
EBITDA	₹1,578 Cr	₹2,257 Cr	₹2,240 Cr	₹2,708 Cr	+19.7%
EBITDA Margin	60.7%	57.9%	60.2%	62.7%	—
PAT (Net Profit)	₹1,335 Cr	₹1,099 Cr	₹984 Cr	₹1,224 Cr	-2.9%
EPS	₹37.36	₹30.66	₹27.52	₹34.21	-2.9%
ROE	15.9%	11.6%	9.4%	11.1%	—
ROCE	13.4%	12.0%	10.4%	11.8%	—
Total Debt	₹4,259 Cr	₹4,639 Cr	₹4,687 Cr	₹5,323 Cr	+7.7%
Free Cash Flow	-₹470 Cr	₹487 Cr	-₹534 Cr	₹1,029 Cr	—

🟢 Revenue has grown at 18.4% a year over 3 years.

🟢 EBITDA has grown at 19.7% a year over 3 years.

🟢 EBITDA Margin has risen from 60.7% to 62.7% over 3 years (+2.1 pts).

🔴 PAT (Net Profit) has shrunk at 2.9% a year over 3 years.

🔴 EPS has shrunk at 2.9% a year over 3 years.

🔴 ROE has fallen from 15.9% to 11.1% over 3 years (-4.8 pts).

🔴 ROCE has fallen from 13.4% to 11.8% over 3 years (-1.6 pts).

🔴 Total Debt has grown at 7.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹470 Cr to ₹1,029 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹22,853 Cr

Total Liabilities

₹8,548 Cr

Cash & Equivalents

₹181 Cr

Operating Cash Flow

₹2,426 Cr

Capex

-₹1,397 Cr

Shareholding (proxy)

Institutional Holding

38.4%

Insider Holding

47.8%

Corporate Actions

Next Earnings

29 Oct 2026

Dividend Rate

₹2.5

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

19 Buy · 0 Hold · 3 Sell

Target Price (Mean)

₹2,111.55

+11.3% vs CMP

Target Range

₹1,700 – ₹2,495

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

4 mixed2 general

The Phoenix Mills Share Price Update: What Changed Today

Univest, 13 Oct

The Phoenix Mills - Positive Breakout: These 7 stocks cross above their 200 DMAs

The Economic Times, 13 Oct

Phoenix Mills stock jumps 4% as JPMorgan says Q1 consumption beats estimates, keeps Overweight rating

Moneycontrol.com, 09 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Phoenix Mills shares fall 6% after Q1 miss; Nomura sees 16% downside

Business Standard, 29 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Why Did Phoenix Mills Shares Decline 6% Despite Strong Q1 Results? By Trade Brains

Investing.com India, 29 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

The Phoenix Mills Ltd. (PHOENIXLTD) Share Price Rise Streak: 2nd Straight Session, Rs 1,848.40

Univest, 12 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Risk

MiddlingProfitability

WeakGrowth · Valuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

All 5 tripwires holding · see Key things to watch ↑