Phoenix Mills shares experienced a rise of approximately 3.7 percent following HSBC’s upward revision of its target price for the stock.
HSBC, maintaining its ‘buy’ recommendation on Phoenix Mills, increased the target price to Rs 3,130 per share from the previous close of Rs 2,707.3, indicating a potential upside of 15.6 percent.
Highlighting the company’s transition from mall operators to a diversified and growth-oriented entity, HSBC noted that the current valuation reflects this evolution.
The stabilisation of new malls and the office portfolio is anticipated to drive high double-digit growth, according to HSBC.
At 10 am, shares of Phoenix Mills were trading at Rs 2,789.9 on the NSE, up 3 percent from the previous session’s closing price.
In its report on February 13, the company disclosed a consolidated net profit of Rs 279.4 for the December quarter, representing a 58.4 percent increase over the previous year, while revenue surged by 44.2 percent to Rs 986 crore.
Consumption witnessed a double-digit growth in the quarter, rising by 25 percent year-on-year to Rs 3,300 crore on an overall basis. On a like-to-like basis, consumption in Q3FY24 grew by 5 percent. Gross retail collections stood at Rs 700 crore, marking a 30 percent increase from the previous year.
Phoenix Mills also reported the transfer of a land parcel owned by the company to the Brihanmumbai Municipal Corporation (BMC) on January 18, as mandated by the development permission granted by BMC. The land, measuring 1,919.73 square meters, was reserved for a playground.
CRISIL Ratings revised its outlook on the long-term bank facilities of Phoenix Mills to ‘positive’ from ‘stable,’ while maintaining the rating at ‘CRISIL AA-’.
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