Morgan Stanley retains overweight call on Phoenix Mills following positive Q4 update, shares touch fresh 52-week high

Over the past six months, Phoenix Mills shares have gained around 56 percent and outperformed the benchmark Nifty 50 index, which has gained around 16.5 percent during the same time.

Morgan Stanley retained its ‘overweight’ call on Phoenix Mills after the mall operator reported that total consumption for the quarter ended March FY24 grew 27 percent on-year.

Phoenix Mills shares surged 3.6 percent in trade on April 12, touching a fresh 52-week high at Rs 3,140 apiece on the NSE.

The brokerage firm retained its call on the mall operator with a target price of Rs 3,000 per share, implying a downside of 0.09 percent from the previous session’s closing price.

Follow our market blog to catch all the live updates

The international brokerage said that the same store consumption data was higher than the consensus, which expressed concerns regarding decelerating consumption growth for mature malls. For example, the consumption for Palladium Mumbai rose around one percent on-year.

Phoenix Mills announced total consumption at Rs 2,818 crore for the quarter ended March FY24, growing 27 percent over a year-ago period, while gross retail collections increased 37 percent YoY to Rs 791 crore during the same period.

In FY24, total consumption rose 22 percent to Rs 11,327 crore, and gross retail collections jumped 27 percent to Rs 2,743 crore compared to the previous year.

The consumption in the same store, excluding Indore, decelerated from Q3FY24. However, Phoenix Mills noted that there was strong ramp up in
consumption in the newly launched malls.

Over the past six months, Phoenix Mills shares have gained around 56 percent and outperformed the benchmark Nifty 50 index, which has gained around 16.5 percent during the same time.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.