Neutral Phoenix Mills; target of Rs 1845: Motilal Oswal

Motilal Oswal recommended Neutral rating on Phoenix Mills with a target price of Rs 1845 in its research report dated September 13, 2023.

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September 14, 2023 / 14:02 IST

Neutral

26 Aug, 2025 12:21

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Motilal Oswal's research report on Phoenix Mills

Phoenix Mills (PML)’s FY23 annual report highlights: a) the company’s strong execution capabilities, with its retail portfolio doubling in the last five years b) significant business growth in new malls, and c) Healthy growth trajectory for the retail sector. In FY19, the company laid out its ambitious vision of doubling of its retail mall portfolio. As of CY23, it has a retail portfolio of over 11 msf, which has expanded by over 5 msf since FY19. The management’s focus is on capturing regional discretionary consumption by building a dominant consumption center. The land acquisitions in Indore and Ahmedabad took place in mid-CY18 and both the malls commenced operations in Dec’22 and Feb’23, respectively, demonstrating the company’s capability to deliver exceptional retail destinations within the specified project timelines and budgeted costs. While the portfolio has almost doubled, PML has secured its pipeline to take the operational retail mall portfolio to beyond 14 msf by end-FY27.

Outlook

The company has progressed well on ramping up occupancy in Indore and Ahmedabad. It has recently inaugurated Pune mall and is on track to deliver Bengaluru mall in 3QFY24. We believe that the company’s growth trajectory continues to remain intact, however a large part of earnings growth over the next two years is already priced in and we see limited upside potential in the near term. Thus we reiterate our Neutral rating with a TP of INR1,845.

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