By Aditya Raghunath
Investing.com -- The Phoenix Mills Ltd. (NS: PHOE ) is one of the country’s leading mall owners. All its malls are known for having some of the most premium stores in any region it gets into. However, it has also been one of the worst-performing realty stocks in 2021.
It has been hit by multiple lockdowns and restrictions, and footfall in its properties have dwindled. The stock has only gained 8.35% in 2021. Nifty Realty which Phoenix is a part of has gained almost 31% in the same time period.
ICICI Securities forecasts a change in Phoenix Mills’ fortunes. Its report said, “For FY21, mall consumption of Rs33.3bn was at 69% of FY20 levels while rental income of Rs5.6bn stood at 55% of FY20 levels. To tide over the intermittent Covid related disruptions, PHNX has raised ~Rs26bn of equity capital through QIP route and SPV level stake dilution between Aug’20 to Jun’21 and has access to an additional funding pool of Rs10bn. We assume a 30% LTL rental income loss for FY22E owing to expected rental waivers in H1FY22 and retain our FY23E estimates as we believe that the long-term growth story for Grade A malls in India remains intact.”
The brokerage has a buy call on the stock with a target of Rs 1,231, a 44.6% upside from its closing price of Rs 851 on September 17.
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