Mall shutdowns to limit the spread of coronavirus could impact near-term earnings, says CLSA.
The share price of mall developer and operator Phoenix Mills fell 15 percent intraday on March 16 after the CLSA downgraded the stock to “underperform” from “buy” with a target of Rs 850 per share.
"Mall shutdowns after the government order to limit the coronavirus spread could impact near-term earnings," said the brokerage house.
"Overhang on mall consumption due to shutdowns and footfall declined but we remained positive on the company's long-term growth trajectory."
The selloff was not restricted to a particular stock or a sector but across the market, as the spike in novel coronavirus cases outside China, from where the outbreak started, is expected to dent global growth in the short term.
The Sensex and Nifty have crashed more than 23 percent from their record highs seen in January.
The stock was quoting at Rs 686.05, down Rs 65.45, or 8.71 percent, on the BSE at 1115 hours.
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