Phoenix Mills Stock Analyzed
Nomura has decided not to change its opinion on Phoenix Mills stock. They’ve kept their “Reduce” rating, meaning they think the stock price will likely go down. This decision came after Phoenix Mills shared information about how they were doing during the second quarter of the financial year 2026 (Q2FY26).
Key Points
- Nomura recommends selling Phoenix Mills stock.
- Sales growth is slowing down, not as fast as expected.
- Retail income growth is weaker than sales growth.
- Stock is considered “expensive” compared to past performance.
- Valuation is high (23x earnings) considering growth prospects.
- Sales growth is expected to slow in the next few months.
Phoenix Mills reported that sales were up 13% compared to the same time last year, but this wasn’t enough to excite Nomura. They also worried that the company’s income from renting out space in their malls wasn’t growing as quickly as sales.
The sales growth was driven by a few of their biggest malls, like the ones in Mumbai, Pune, Bengaluru, and Bangkok. However, two malls – Bangalore and Pune – were being changed and had no sales growth because of this change. Nomura believes this trend might continue.
The company also has offices that are renting space to businesses. They leased out 0.7 million square feet of space during the first half of the year. Occupancy rates in some offices were around 76%, which is a little better than before, but still something to watch.
Phoenix Mills also owns some hotels. Their hotels were running at 85% capacity, which is good. The average price they charge for a room was also up slightly. However, this was partly because the same time last year was unusually expensive.
Finally, the company sold new apartments for ₹139 crore, which is much lower than the ₹2,700 crore they sold in the same time last year. Their collections from these new apartments were also down at ₹115 crore, compared to ₹600 crore last year. This shows a big drop in demand for new homes.
“Phoenix Mills’ slower growth and high valuation suggest investors should reconsider their positions.”
