CLSA downgrades Phoenix Mills to outperform, target price Rs 850

CLSA has downgraded Phoenix Mills to outperform from buy in the long term with a target price of Rs 850. Shares of Phoenix Mills ended down 2% at Rs 751.50 on Friday while the BSE Sensex closed 1325.34 points up (+4.04%) at 34,103.48.

Investment Rationale



For the quarter ended 31-12-2019, the company has reported consolidated sales of Rs 511.79 core, up 23.30 % from last quarter sales of Rs 415.07 crore and up 16.20 % from last year same quarter sales of Rs 440.43 crore. The company has reported net profit after tax of Rs 96.49 crore in the latest quarter.

The Karnataka state government ordered shutdown of all malls, pubs and theatres for one week to curb the spread of Covid-19. Mall owner Phoenix Mills’ near term earnings may be impacted because of this, the brokerage remains positive on the company’s long-term earnings growth trajectory, the brokerage said. CLSA has downgraded the stock due to near term overhang on mall consumption due to shutdowns and footfall declines.