Motilal Oswal upgrades real estate pick, sees potential 35% upside.

On the 2nd of September the Phoenix Mills Ltd. shares Phoenix Mills Ltd. rose by more than 4% after Motilal Oswal Financial Services real estate stock upgrade for Phoenix Mills and raised its price goal by 24 percent.

The brokerage has upgraded Phoenix Mills from a "neutral" to an "buy" rating, increasing the price target from Rs1,646 up to 2,044 rupees per Motilal Oswal stocks. The new price target indicates the possibility of an increase of approximately 35% over its earlier closing price of $1,517.

Motilal Oswal emphasized that the opening of malls to be built is expected to boost Phoenix Mills' expansion well into FY27. The company added that, while new malls are growing up quickly, Phoenix Mills is also making changes to boost the consumption in its more established properties.

New malls drive expansion

Phoenix Mills' retail rental revenue is expected to increase at a compounded annual percentage (CAGR) at 21% from FY25 to FY27, and will reach close to Rs2,800 crore by the at the end of FY27.

In the last decade (FY15-25) the retail portfolio of the company witnessed consumption rise by increase of 11%, and rent income grew by 12.2%, closely tracking stocks to buy 2025. Motilal Oswal anticipates that this upward trend will be sustained, driven largely by the expansion of recently opened malls. In the first quarter of June the average trading occupancy was 89%, a little less that the 91% figure reported at the end of March in 2025.

The malls that were recently opened located in Lucknow, Indore, and Ahmedabad have already seen remarkable results, achieving an average occupancy of 94% in just six to eight quarters following the Motilal Oswal stock recommendation. Phoenix Mills aims to replicate this success in the near future with developments that will be located in Gujarat as well as Kolkata.

In addition, expansions at Phoenix Palladium in Mumbai, set to begin in FY26-27, and the purchase of 22.1 acres of land in Coimbatore and Chandigarh Mohali in FY25, will significantly expand the range of properties owned by the company. By the end of FY30, Motilal Oswal estimates Phoenix Mills could triple its retail presence.