On September 2nd, shares of Phoenix Mills Ltd. increased by over 4% following an upgrade by Motilal Oswal Financial Services. The brokerage has revised its rating for Phoenix Mills from “neutral” to “buy” and raised the price target by 24%, from Rs1,646 to Rs2,044 per share. This new target suggests a potential increase of approximately 35% from its previous closing price of Rs1,517. Motilal Oswal highlighted that the opening of new malls is expected to significantly contribute to Phoenix Mills’ growth through FY27. While new malls are being developed, the company is also implementing strategies to enhance consumption in its established properties.
Phoenix Mills’ retail rental revenue is projected to grow at a compounded annual growth rate (CAGR) of 21% from FY25 to FY27, reaching nearly Rs2,800 crore by the end of FY27. Over the past decade (FY15-25), the company’s retail portfolio experienced an 11% increase in consumption and a 12.2% rise in rental income, closely aligning with stock performance forecasts for 2025. Motilal Oswal expects this positive trend to continue, primarily fueled by the expansion of newly launched malls. In the first quarter ending in June, the average trading occupancy stood at 89%, slightly down from 91% reported in March 2025.
Recently opened malls in Lucknow, Indore, and Ahmedabad have shown impressive performance, achieving an average occupancy of 94% within six to eight quarters since the stock upgrade. Phoenix Mills plans to replicate this success with upcoming developments in Gujarat and Kolkata, along with expansions at Phoenix Palladium in Mumbai, slated to commence in FY26-27, and the acquisition of 22.1 acres of land in Coimbatore and Chandigarh Mohali in FY25. By the end of FY30, Motilal Oswal estimates that Phoenix Mills could potentially triple its retail footprint.
