Phoenix Mills stock rating upgraded by CLSA on CPPIB stake buyout

Published 27/07/2025, 17:08
Phoenix Mills stock rating upgraded by CLSA on CPPIB stake buyout

Investing.com - CLSA has upgraded Phoenix Mills Ltd (NS:PHNX) from Hold to Outperform and raised its price target to INR1,790.00 from INR1,720.00 following the company’s acquisition of CPPIB’s stake in their joint venture.

Phoenix Mills has acquired Canada Pension Plan Investment Board’s (CPPIB) 49% stake in Island Star Mall Developers Pvt Ltd (ISMDPL) for Rs54.5 billion, according to CLSA. The transaction will be funded through debt and internal accruals of the joint venture.

The acquisition gives Phoenix Mills controlling stake in what CLSA describes as a "high-performing JV" and positions the company to "further unlock value." CLSA estimates the acquisition will be value accretive to Phoenix Mills by approximately Rs104 per share, or about 7% at current market price.

CLSA’s upgraded price target of INR1,790.00 reflects a roll-forward of their valuation to June 2026. The previous target was INR1,720.00.

The upgrade to Outperform from Hold was attributed partly to "recent correction in its stock price," according to CLSA’s research note.

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