Expansion lays bricks for Phoenix upgrade

Revamps and launches spark bullish call on the stock

- TANMAY TIWARY

Shares of India's largest retail-led mixed-use developer Phoenix Mills slipped on Wednesday after a sharp rally in the previous session. The stock had risen over 5 per cent on Tuesday to hit an intraday high of ₹1,597.3, following an upgrade from domestic brokerage Motilal Oswal.

On Wednesday, however, the stock gave up some of those gains and closed 3.02 per cent lower at 1,518, even as the benchmark BSE Sensex settled 0.51 per cent higher at 80,567.71. Motilal Oswal upgraded Phoenix Mills to a 'buy' rating and raised its target price to ₹2,044 from ₹1,673 earlier, implying a potential upside of 35 per cent.

Between 2014-15 and 2024-25 (FY25), Phoenix Mills delivered an 11 per cent compound annual growth rate (CAGR) in retail consumption, driven by around 7 per cent like-for-like growth in existing malls and the successful launch of new properties in Lucknow, Indore, Ahmedabad, Pune, and Bengaluru. Retail rental income grew at a 12 per cent CAGR over the same period, closely mirroring consumption trends.