Motilal Oswal Upgrades Phoenix Mills, Sees 35% Upside in Real Estate
Motilal Oswal Financial Services has upgraded Phoenix Mills from 'neutral' to 'buy,' raising its price target by 24% to Rs2,044, indicating a potential 35% upside.
Real EstatePhoenix MillsMotilal OswalStock UpgradeRetail ExpansionReal Estate NewsSep 02, 2025
Motilal Oswal emphasized that the opening of new malls is expected to boost Phoenix Mills' expansion well into FY27. The company added that, while new malls are growing quickly, Phoenix Mills is also making changes to boost consumption in its more established properties.
New malls are driving the expansion of Phoenix Mills' retail rental revenue, which is expected to increase at a compounded annual growth rate (CAGR) of 21% from FY25 to FY27, reaching close to Rs2,800 crore by the end of FY27. In the last decade (FY15-25), the retail portfolio of the company witnessed a consumption increase of 11%, and rent income grew by 12.2%, closely tracking stocks to buy in 2025. Motilal Oswal anticipates that this upward trend will be sustained, driven largely by the expansion of recently opened malls.
In the first quarter of June, the average trading occupancy was 89%, a little less than the 91% figure reported at the end of March 2025. The malls that were recently opened in Lucknow, Indore, and Ahmedabad have already seen remarkable results, achieving an average occupancy of 94% in just six to eight quarters following the Motilal Oswal stock recommendation. Phoenix Mills aims to replicate this success in the near future with developments that will be located in Gujarat and Kolkata.
In addition, expansions at Phoenix Palladium in Mumbai, set to begin in FY26-27, and the purchase of 22.1 acres of land in Coimbatore and Chandigarh Mohali in FY25, will significantly expand the range of properties owned by the company. By the end of FY30, Motilal Oswal estimates Phoenix Mills could triple its retail presence.
Frequently Asked Questions
Why did Motilal Oswal upgrade Phoenix Mills?
Motilal Oswal upgraded Phoenix Mills from 'neutral' to 'buy' due to the expected growth in retail rental revenue and the successful opening of new malls, which are expected to boost the company's expansion well into FY27.
What is the new price target for Phoenix Mills?
The new price target for Phoenix Mills, as set by Motilal Oswal, is Rs2,044, indicating a potential 35% upside over its earlier closing price of Rs1,517.
What is the expected CAGR for Phoenix Mills' retail rental revenue?
Phoenix Mills' retail rental revenue is expected to increase at a compounded annual growth rate (CAGR) of 21% from FY25 to FY27, reaching close to Rs2,800 crore by the end of FY27.
What are some of the recent successes of Phoenix Mills' new malls?
Recently opened malls in Lucknow, Indore, and Ahmedabad have achieved an average occupancy of 94% in just six to eight quarters, indicating strong performance and potential for further growth.
What future developments are planned by Phoenix Mills?
Phoenix Mills plans to expand at Phoenix Palladium in Mumbai, starting in FY26-27, and has purchased 22.1 acres of land in Coimbatore and Chandigarh Mohali in FY25, aiming to significantly expand its property portfolio.
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