Phoenix Mills shares rally 5% as Motilal Oswal upgrades to ‘Buy’, lifts target price to Rs 2,044

Shares of The Phoenix Mills rallied 5% on Tuesday to an intraday high of Rs 1,597.30 on the BSE after domestic brokerage firm Motilal Oswal upgraded the stock to a ‘buy’ rating. The brokerage also revised its target price to Rs 2,044, up from Rs 1,673 earlier, implying a 35% upside.

Motilal Oswal said in its note, “We upgrade our rating to BUY with a revised TP of INR2,044 (earlier INR1,673), implying upside potential of 35%.”

The upgrade comes on the back of the company’s strong operating performance across its retail, office, and hospitality segments.

According to Motilal Oswal, “While new malls continue to ramp up well, PHNX is implementing measures to accelerate consumption at mature malls. These initiatives, along with a further increase in trading occupancy, will help PHNX sustain healthy traction in consumption.”

The brokerage also highlighted Phoenix Mills’ acquisition of the remaining 49% stake in Island Star Mall Developers (ISMDPL), which it said, “strengthens its high-quality retail asset portfolio, unlocking long-term value.”

The deal is expected to be earnings-accretive from the first year, with meaningful upside as rental income stabilizes and incremental development potential unfolds.Motilal Oswal noted that Phoenix Mills’ retail portfolio achieved an 11% CAGR in consumption over FY15–25, supported by new mall additions in key cities such as Lucknow, Indore, Ahmedabad, Pune, and Bengaluru. Looking ahead, the brokerage estimates a 21% CAGR in retail rental income over FY25–27E to reach Rs 28 billion by FY27E, with total income projected at Rs 39 billion.On the office space segment, the report said, “Looking forward, PHNX’s office portfolio is expected to grow significantly over the next few years. By FY27, in a phased completion, the portfolio is projected to increase nearly fourfold, reaching 7.1 msf. This growth will boost rental income to INR6b by FY27, representing a 71% CAGR over FY25-27 or a 3x increase.”

The brokerage also sees strong potential in the hospitality segment. Phoenix’s flagship property, St. Regis in Mumbai, has seen improved operating performance, and projects in Bengaluru and other cities are expected to expand the hospitality portfolio to 1,800 keys from the current 588 keys. Motilal Oswal stated, “This will triple its hospitality portfolio to over 1,800 keys.”

Overall, Motilal Oswal’s bullish view on Phoenix Mills stems from its diversified portfolio across retail, office, and hospitality assets, strong growth visibility, and accretive acquisitions, which are expected to drive long-term value creation.

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