Jefferies keeps Buy on Phoenix Mills as mall consumption rises 32%
Jefferies retained its Buy rating on Phoenix Mills, citing Rs 4,730 crore in mall consumption, up 32% year on year. The brokerage set a Rs 2,215 target price, implying 16% upside, as lease income rose 17% and pre-exceptional profit increased 23%.
What happened
Jefferies reiterated Buy ratings on eight Indian companies, highlighting Phoenix Mills’ mall-consumption growth and expansion pipeline, Asian Paints’ demand
Key facts
- Jefferies retained Buy ratings on 8 stocks
- Target-price upside ranges from 16% to 41%
- Phoenix Mills target price: Rs 2,215; upside: 16%
- Phoenix Mills mall consumption: Rs 4,730 crore, up 32% YoY
- Phoenix retail lease income: up 17% YoY
- Phoenix pre-exceptional net profit: Rs 300 crore, up 23% YoY
- Devyani International target price: Rs 160; upside: 41%
- Asian Paints India decorative volume growth: 9% YoY
- Asian Paints value growth: 17% YoY
- Asian Paints EBITDA growth: about 33% YoY
Why this matters
Phoenix Mills’ strong consumption-led earnings reinforce the strategic value of premium mall assets and could support further mixed-use expansion, acquisitions or partnerships in high-growth urban catchments.
What to watch
- Same-mall consumption growth after the festive and wedding-demand periods
- Lease rental income growth versus the reported 17% pace
- Trading occupancy, physical occupancy and leasing spreads on renewals
- Tenant sales productivity and retailer expansion announcements, especially in luxury and international brands
- Growth in F&B, entertainment and experiential footfall drivers
- Consumer discretionary trends, inflation, interest rates and urban employment indicators
- Performance and leasing progress at recently opened or upcoming Phoenix Mills properties
- Prioritize leasing mix toward luxury, beauty, F&B, entertainment and high-conversion international brands to sustain tenant sales density.
- Use stronger consumption data to raise rentals on renewals, reduce incentives and improve revenue-share arrangements with outperforming tenants.
- Accelerate leasing, fit-outs and marketing for newer or under-monetized mall assets while maintaining occupancy discipline.
- Highlight tenant sales per square foot, occupancy cost ratios, trading occupancy and same-mall consumption growth in upcoming investor communications.
- Evaluate selective asset recycling, capital raising or expansion funding if valuation strength improves access to capital.