Accumulate Phoenix Mills - Emkay

Phoenix Mills
Reco: ACCUMULATE
CMP: Rs 189
Target Price: Rs 231

SPV's phase 2 development – Growth Catalysts

- On completion of Phase 1 of most Market City (MC) projects, monetization of Phase 2 developments will set course for company's growth path

- Phoenix Mills' (PML) now subsidiary Phoenix Hospitality changes most of its development formats from hotels to residential & commercial – A positive move

- Debt at the standalone level goes up by Rs 240mn to Rs 2.7bn as the company continues to provides additional capital to SPVs to bridge finance the phase 2 development

- We maintain our Accumulate rating with TP of Rs 231. Clarity on cashflows from phase 2 of MC projects will demand the change in rating.

Source : Equity Bulls

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