Phoenix Mills share price jumps over 5% as Motilal Oswal raises target price to ₹2,044

Shares of Phoenix Mills, engaged in the operation and management of malls, rose 5.3% in intraday trade on Tuesday, September 2, to reach ₹1,597, following a double upgrade from domestic brokerage firm Motilal Oswal, which revised its rating on the stock to 'buy' and raised the target price to ₹2,044 apiece from an earlier ₹1,673. This indicates an upside potential of 35% from the stock's latest closing price. 

The brokerage’s positive outlook stems from the company’s significant expansion in its office portfolio, the ramp-up of new malls, and growing momentum in the hotel segment.

It said that Phoenix Mills' retail portfolio delivered an 11% CAGR in consumption supported by 7% like-for-like growth in the existing malls and the opening of new malls in Lucknow, Indore, Ahmedabad, Pune, and Bengaluru.

Additionally, retail rental income clocked a similar 12% CAGR during this period, mirroring the consumption growth. The brokerage anticipates this positive growth trend to continue, primarily driven by the ramp-up of new malls.

It projects retail rental income to grow at a 21% CAGR over FY25–27, reaching ₹28 billion, with total income estimated at ₹39 billion by FY27.

Motilal Oswal also forecast that Phoenix Mills’ office portfolio to grow significantly over the next few years. By FY27, in a phased completion, the portfolio is projected to increase nearly fourfold, reaching 7.1 msf, which is expected to boost the company’s rental income to ₹6 billion by FY27, representing a 71% CAGR over FY25–27 or a 3x increase.

After the implementation of the ‘mall of the future’ strategy, the company successfully delivered its first asset, Fountainhead (0.8 msf), in Pune in 4QFY22. This marked the beginning of a significant expansion of its office portfolio, which now totals 2 msf.

Despite initial concerns over office demand, the Fountainhead asset has seen a steady rise in occupancy, reaching 65% since its completion, signaling a positive outlook for the office sector within its retail spaces.

Motilal Oswal further highlighted strong gains at the company’s flagship hotel, St. Regis, which has seen a solid improvement in operations. With new projects in Bengaluru, Citadel, and Thane, the hospitality portfolio is set to triple to 1,800 keys from 588.

Phoenix Mills shares remain volatile

The shares have been under pressure since reaching an all-time high of ₹2,068 apiece in July 2024. Although they showed a slight recovery in March 2025, they failed to sustain the momentum. At current levels, the stock is trading 24% lower than its peak. Nevertheless, the stock has gained 125% over the last two years and 380% over the last five years.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.