Buy Phoenix Mills ; target of Rs 746: Motilal Oswal

Motilal Oswal 's research report on Phoenix Mills

Due to the COVID-19 led crisis, real estate segments such as retail, residential and hospitality faced near-term challenges. However, the commercial segment has shown resilience. Further, the latest directive by the Government of Maharashtra to commence mall operations from the first week of Aug’20 bodes well for Phoenix Mills (PHNX). PHNX still remains one of the best proxy plays on India’s consumption story in the medium-to-long term. Maintain Buy due to favorable risk-reward.

Outlook

We value PHNX’s retail assets based on DCF-based NAV approach, assuming a cap rate of 9.5% and discount rate of 13.5%. Maintain Buy with an SOTP-based TP of INR746.