Here's why Geojit has upgraded Phoenix Mills to Buy from Hold; check target

Analysts at brokerage firm Geojit remain bullish on retail mall developer and operator The Phoenix Mills, citing a strong project pipeline that offers clear growth visibility. The brokerage highlighted Phoenix Mills’ robust performance in Q2FY26, driven by resilient retail consumption, improving occupancy across office assets, and strong traction in residential sales. Geojit has upgraded its rating on the stock to ‘Buy’ from ‘Hold’, with a revised target price of ₹1,996, based on 5.4x FY27E adjusted book value per share (BVPS). This target is nearly 19 per cent higher than the stock’s last traded price of ₹1,678.30 on the BSE.Q2FY26 highlightsRetail rental income rose 10 per cent Y-o-Y to ₹527 crore, led by higher rentals at Phoenix Palladium, Mumbai (up 14 per cent), Palladium Ahmedabad (up 14 per cent), and Phoenix Mall of Asia, Bengaluru (up 30 per cent). Phoenix Mills aims to deliver 1–2 million sq ft of retail annually beyond 2030, supported by ongoing land acquisitions and mixed-use asset expansion plans. A major milestone during the quarter, analysts said, was the launch of Gourmet Village at Phoenix Palladium, a two-level dining and entertainment hub featuring 19 outlets, designed to enhance experiential retail and footfall engagement. The company expects normalised performance in its Pune and Bengaluru malls by March 2026, with over 90 per cent trading occupancy post re-leasing and fit-out completion. CATCH STOCK MARKET LIVE UPDATES TODAYCapital, debt managementGeojit analysts noted that management has reaffirmed a peak leverage ceiling of 2x Ebitda, to be maintained only temporarily, ensuring disciplined capital allocation and prudent debt management through internal accruals. The company, analysts said, expects the cost of debt to remain near 7.7 per cent, supported by low-risk lease rental discounting (LRD) funding and strong lender relationships post the CPP transaction.Strategic focus, long-term outlook“A strategic focus on experiential retail through concepts such as Gourmet Village, along with expansions into new geographies, is expected to enhance footfalls and brand visibility,” the analysts wrote in a research note. They further highlighed that the office portfolio is witnessing robust leasing momentum, while hospitality assets continue to benefit from steady demand recovery. The brokerage believes that the company’s continued emphasis on premiumisation, asset efficiency, and disciplined capital deployment is likely to support robust long-term growth and value creation. (Disclaimer: Target price and stock outlook has been suggested by Geojit. Views expressed are their own.)