As strong financials helped the stock reach new heights, promoter Atul Ruia has pared his stake. The Ruia family, including Atul Ruia Family Trust, has sold 3.59% for Rs 3.74 billion on September 27, making it the promoters’ first disposal over the past five years. Promoter stake had remained unchanged at 62.75% between December 2018 and June 2019.
The positive sentiment is echoed by analysts, who remain upbeat about the company’s prospects. Besides its residential business, Phoenix Mills’ core portfolio comprising retail malls, commercial and hospitality properties is showing signs of steady growth. In Q1FY20, the core portfolio registered revenue of Rs.4.07 billion, in-line with analyst estimates.
Analysts at Motilal Oswal Securities are also betting on Phoenix Mills as a play on India’s retail growth story. They observe that the company’s “strong track record of execution, scalability and robust cash generation” make it an attractive bet.
Mutual funds have increased their stake from 3.59% in December 2018 to 5.13% in June 2019. DSP MF and UTI MF have upped their holding from 0.59% and 0.93% to 1.96% and 1.41%, respectively, over the last two quarters. Foreign portfolio investors (FPIs) however aren't feeling as buoyant. They have reduced their stake from 27.93% to 26.88% from December 2018 to June 2019. The largest FPI in the stock, Nordea 1 Sicav - Emerging Stars Equity Fund, has cut its stake from 4.82% to 4.07%.