1:1 Bonus Shares By The Phoenix Mills: Set Stop-Loss At Rs 3430 For Target?

Phoenix Mills, with a market capitalisation of Rs 64,477.91 Cr, is one of the largest developers of real estate. The group has properties in Ahmedabad, Mumbai, Raipur, Bengaluru, Chennai, Pune, Agra, Indore, Lucknow, Bareilly, and Bengaluru. On Thursday, the shares of The Phoenix Mills ended 0.44% higher at Rs 3607.60 apiece after the company declared financial results for the quarter ended 30th June 2024 along with bonus shares allotment in a 1:1 ratio.

The Phoenix Mills Bonus Shares

The Board of Directors considered and approved "Issuance of Bonus Shares in the ratio of 1:1 i.e. 1 (One) Equity Share of face value of Rs. 2/- each for every 1 (One) existing Equity Share of face value of Rs. 2/- each held by the Shareholders of the Company as on Record Date, subject to the approval of the members and other statutory/regulatory approvals, consents, permissions, conditions, and sanctions, as may be necessary," said the company in a regulatory filing on Wednesday.

The company's pre-bonus paid-up share capital is 17,87,27,988 equity shares of face value of Rs. 2/- each aggregating to Rs. 35,74,55,976 /- while the post-bonus paid-up share capital will be 35,74,55,976 equity shares of face value of Rs. 2/- each aggregating to Rs. 71,49,11,952. Rs. 35,74,55,976/- would be capitalized from free reserves for implementing the bonus issue, as per The Phoenix Mills.

The Phoenix Mills Q1 Results

In the June quarter of the fiscal year 2025 (Q1FY25), Phoenix Mills' profit dropped 3.3% year on year (Y-o-Y) to Rs 232.5 crore from Rs 240.5 crore in the corresponding June quarter of the fiscal year 2024 (Q1FY24). From Rs 810.6 crore in the June quarter of FY24 to Rs 904.1 crore in the June quarter of FY25, the revenue from operations increased by 11.5%. In the June quarter of the current fiscal year, the company's earnings before interest, tax, depreciation, and amortisation (Ebitda) increased 7.9% year on year to Rs 531 crore from Rs 492.3 crore in the same quarter last year.

The Phoenix Mills Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "PHOENIXLTD is currently trading at Rs 3600. On the daily chart, the stock is showing a pattern of higher highs and higher lows, suggesting a strong uptrend. Investors holding the stock can trail their stop-loss. If the price closes above the Rs 3750 level, it is expected to further rise to Rs 4250 and Rs 4500 levels. The Relative Strength Index (RSI) for PHOENIXLTD stands at 46.24, indicating room for potential upside."

"Additionally, the Stochastic RSI shows a positive crossover, further supporting the bullish sentiment. Notably, the stock is trading above all major moving averages, highlighting its strength in the market. Considering these technical indicators and the prevailing market conditions, the current level of Rs 3600 presents a favorable buying opportunity for PHOENIXLTD. The trade's targets are set at Rs 4250 and Rs 4500, with a recommended stop-loss at Rs 3430 to manage potential risks," the analyst further added.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.