Phoenix Mills Share Price Hits Seven–Month Low After Citi Cuts Target Price On Weak Q2

Phoenix Mills Ltd.'s share price fell to its lowest level in seven months on Monday after Citi Research cut the target price on the stock following a decline in the profit during the July–September quarter. The brokerage reduced the target price to Rs 1,975 per share from Rs 2,020 apiece, implying a 33.21% upside from Friday's closing price.

However, Citi Research maintained its 'buy' rating on Phoenix Mills shares, believing that the company could potentially benefit in the medium term due to the launch of new malls across India and the growth of organic consumption.

Phoenix Mills reported that its consolidated net profit declined 4.3% on year to Rs 292 crore in the second quarter from Rs 305 crore. Citi Research attributed the weak results in the second quarter to soft consumption, which is likely to continue in the near term.

Citi Research set the new target price at Rs 1,975 apiece, factoring in residential business trends and other operational parameters. High concentration in the retail and hospitality segments, slower leasing and footfall, and a rapidly changing property market impacting demand-supply scenarios can prevent Phoenix Mills' share price from reaching Citi Research's target price, it said in the note.

In the bull case, Phoenix Mills' share price may rise to Rs 2,560 apiece, while in the bear case it can fall to Rs 1,440 apiece, Citi Research said.