Shares of Phoenix Mills Ltd gained over 3% today after financial services firm Motilal Oswal initiated coverage on the stock with a ‘buy’ call. Phoenix Mills is engaged in the development and leasing of commercial and retail space.
Motilal Oswal has assigned a price target of Rs 2,000 per share on Phoenix Mills, an upside of nearly 55 percent from its closing level of Rs 1,293.70 on March 20, 2023.
Phoenix Mills shares hit an intraday high of Rs 1332.85 against the previous close of Rs 1293.70 on BSE. Later, the stock closed 2.29% higher at Rs 1332.85. The stock has gained 7.85% in three sessions. It opened 2.03% higher at Rs 1323.35 on BSE.
The stock has gained 28.11% in a year but lost 6.47% this year. Total 2936 shares of the firm changed hands amounting to a turnover of Rs 38.81 lakh on BSE today. Market cap of the firm rose to Rs 23,633 crore in today.
In terms of technicals, the relative strength index (RSI) of RIL stock stands at 45.9, signaling it’s trading neither in the undersold zone nor in the oversold zone. The stock has a beta of 0.6, indicating low volatility in a year. The stock is trading higher than the 5 day and 20 day moving averages but lower than 50 day, 100 day and 200 day moving averages.
Motilal Oswal said Phoenix mills has 11 operational malls with leasable area of 9 million square feet as of March 2023. The company also recently purchased land to develop a 1 million square feet mall in Surat by 2026-27 and has a long-term vision to add 1 million square feet of retail assets every year.
With this expansion, Phoenix Mills will have presence in six out of top eight cities and three tier-II cities, according to Motilal Oswal.
It added that Phoenix Mills has also reported a healthy pre-leasing of around 90 percent for its malls. Keeping in view of the above, the company’s rental income is expected to report a compounded annual growth rate (CAGR) of 32 percent over FY23-25 to Rs 2,200 crore, said Motilal Oswal.
