HSBC upgrades Phoenix Mills stock rating to Buy on valuation reset

Published 25/07/2025, 06:44
HSBC upgrades Phoenix Mills stock rating to Buy on valuation reset

Investing.com - HSBC has upgraded Phoenix Mills Ltd (NS:PHNX) from Hold to Buy and raised its price target to INR2,000.00 from INR1,850.00.

The upgrade follows a stock correction that HSBC believes has created an attractive entry point, as the current valuation no longer accounts for growth beyond visible assets and provides "adequate downside protection."

HSBC had previously downgraded Phoenix Mills to Hold on August 2, 2024, citing concerns that the company needed to add new malls at a faster pace for valuation to rise above then-current levels.

The firm made minor adjustments to its earnings per share estimates for FY26-27, reducing them by 0.4%-0.5% due to tightened assumptions on office leasing and new project commissioning.

HSBC’s new target price is based on a sum-of-the-parts analysis valuing Phoenix Mills at INR2,099 as of March 2026, discounted by six months, compared to the previous nine-month discount period that yielded the earlier INR1,850 target.

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