Shares of The Phoenix Mills Ltd jumped nearly 5% on September 2 after Motilal Oswal upgraded the stock to ‘buy’ with a revised target price of Rs2,044—implying a 35% upside from current levels. At 9:55 a.m., the stock was trading at Rs1,583.7, up 4.4%.
The upgrade is backed by Phoenix Mills’ strong retail performance and expansion momentum. Between FY15–25, the company’s retail portfolio recorded an 11% CAGR in consumption, driven by ~7% like-for-like growth in existing malls and the launch of new properties in Lucknow, Indore, Ahmedabad, Pune, and Bengaluru. Retail rental income mirrored this trend with a 12% CAGR.
Motilal Oswal projects a 21% CAGR in retail rental income over FY25–27E, reaching Rs2,800 crore by FY27E. Total income is expected to hit Rs3,900 crore, supported by continued ramp-up of new malls and initiatives to boost consumption at mature properties.
Phoenix Mills is also expanding its office portfolio within mall premises, with key developments in Bengaluru (1.2 msf), Chennai (0.4 msf), and Palladium Mumbai (1.1 msf). Newly launched malls in Pune and Bengaluru, each with 1.2 msf of office space, are contributing to this segment’s growth.
In a strategic move, the company has acquired the remaining 49% stake in Island Star Mall Developers (ISMDPL), consolidating its premium retail assets. Motilal Oswal noted the deal is expected to be earnings-accretive from year one, with further upside as rental income stabilizes and 2.71 msf of incremental FSI is developed over the medium term. The staggered payment structure is expected to keep the net debt-to-equity ratio below 0.4x for the next two years.
Phoenix Mills’ diversified portfolio, execution strength, and financial stability continue to position it as a key player in India’s retail and real estate landscape.
