Accumulate Phoenix Mills; target of Rs 390: Kotak Sec

Kotak Securities research report on Phoenix Mills“Phoenix Mills, standalone results of the company for Q2FY15 were in line with our estimates. Performance of various market cities has started improving. From here on, company's focus would be on launching residential projects as well as debt reduction. We continue to remain positive on the company but owing to limited upside, we maintain ACCUMULATE on Phoenix Mills.” “At current price of Rs 369, stock is trading at 30.2x P/E and 23.3x EV/EBITDA on FY16 standalone estimates. We maintain our standalone revenue and profit estimates but revise the valuations from various market cities on account of increased rentals as well as higher stake of Phoenix mills. We thus arrive at a revised price target of Rs 390 (Rs 350 earlier). We thus continue to maintain ACCUMULATE rating on the stock on account of limited upside from the current levels. We continue to remain positive on the company as we believe that company is likely to benefit from improved rentals in its market cities, residential launches as well as reduction in leverage going forward. We would thus advise investors to buy the stock on declines,” says Kotak Securities research report.   

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