Shares of Phoenix Mills Ltd. rose to their highest as investors continue to bet on the mall operator amid rising consumption in Asia third-largest economy.
The operator of India's second-biggest shopping mall, Phoenix Market City in Mumbai, rose as much as 3.9 percent to a record Rs 732 apiece. The stock has returned 15 percent so far this year.
The mall developer has nearly tripled investor wealth since its 2016 low, helped by its profit growth and rental income. Retail portfolio contributed 65 percent to the revenue in the year to March at Rs 1,619.8 crore. Malls business grew at 9 percent year-on-year with an aggregate consumption (or total sales) of Rs 6,320 crore while rental income across malls rose 12 percent to Rs 870 crore.
The developer expects key markets like Bangalore, Mumbai and Pune to drive growth. It has a diversified portfolio of 17.5 million square feet.
Analyst View
All 10 analysts covering the stock have a ‘Buy' rating with a consensus target price of Rs 733.2 per share, according to Bloomberg data showed.
Axis Capital
- Maintains ‘Buy' with target price of Rs 746 apiece
- Strong rental income growth across Market City malls
- Cash can be used to fund growth and deleveraging
Motilal Oswal
- Maintains ‘Buy' with target price of Rs 737 per share.
- Expect renewals across malls to drive growth.
- Lower Parel, Mumbai land development potential of 1.2 million square feet.
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