Motilal Oswal believes that Phoenix is a unique play in India's retail growth story.
Phoenix Mills climbed 2.7 percent intraday Monday after brokerage house Motilal Oswal has maintained buy call on the stock with a price target at Rs 708, implying potential upside of 20 percent.
Operational retail portfolio of the company is expected to double in four years, said the research house.
"Currently, the company has a retail portfolio of 5.9 million square feet-msf (operational) and 4.6msf (under construction), with plans to add another 1-2 new assets — taking the total portfolio to 11-12msf by FY23," it explained.
The company is developing five new malls — three under the Canada Pension Plan Investment Board (CPPIB) platform (PMC Wakad, PMC Hebbal, and PMC Indore), Palladium Ahmedabad (a 50:50 alliance with BSafal group), and PMC Lucknow (100 percent self-owned).
Total ongoing investment towards construction of malls and a new office asset (Fountainhead, Pune) is around Rs 5,680 crore.
Of this, the company has already invested Rs 2,230 crore, the balance Rs 3,450 crore (Rs 2,000 crore under the CPPIB platform) will be invested over the next couple of years till FY23, the brokerage said.
Motilal Oswal believes that Phoenix is a unique play in India's retail growth story due to its (a) experienced management with successful track record of execution, (b) scalability as reflected in the line-up of five new under-construction malls, and (c) robust cash generation.
At 11:37 hours IST, the stock was quoting at Rs 601.45, up Rs 11.25, or 1.91 percent on the BSE.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
