Shares of Phoenix Mills Ltd. rose to their highest in four months as analysts said that the mall developer's deals with Singapore’s GIC and Canada Pension Plan Investment Board will provide growth capital.
Nirmal Bang
Maintained 'accumulate' rating, raising the target price to Rs 777--that still implies a potential downside of 3.6%
Phoenix Malls is building a war chest for attractive acquisitions
GIC and Phoenix Mills may consider various options to monetise the investment platform, including by way of a REIT, over a three to the five‐year period from the closing of this transaction.
CLSA
Upgraded from 'outperform' to 'buy', raising the target price to Rs 970, an upside potential of 20%.
Phoenix Mills' Rs 3,500 crore cash will allow it to complete its under-construction projects and also build a war-chest for acquisitions.
Back-to-back deals with CPPIB and GIC amid the current lockdown (malls remain shut) emphasises the resilience of its business in the long term.
With these deals, Phoenix has de-risked its business and lowered its dependence on debt amid the pandemic uncertainty.
The company remains one of the best Covid-19 recovery plays as it showed a V-shaped recovery following easing after the first wave.
Maintain a positive outlook on malls in the long term as India’s lack of social infrastructure (parks, museums, etc.) in major cities means its malls are likely to remain popular destinations in a post-pandemic world.
RECOMMENDED FOR YOU
POPULAR