Phoenix Mills shares soar to a 52-week high despite a weak market; here’s why

Despite opening higher, Indian headline indices fell sharply later in the session, owing mostly to heavy losses in the power, utilities and fast-moving consumer goods sectors. Except for the BSE Consumer Durables, BSE Energy and BSE Oil & Gas indices, all sectoral indices were trading down. 

With losses of more than 1%, BSE Realty was one of the worst-performing sectors. Macrotech Developers Ltd and DLF Ltd had the worst performance. Shares of Phoenix Mills Ltd, on the other hand, impressed investors with robust gains in an otherwise weak market. On an intraday basis on Friday, shares of Phoenix Mills Ltd soared more than 5%, touching a 52-week high of Rs 1,646.90 per share on the BSE.  

Shares have seen considerable buying interest following the company’s operational update for the quarter ending June 30, 2023. The company announced that the total consumption in Q1FY24 was Rs 25,745 million, representing an 18% year-on-year growth over Q1FY23. A number of properties, including Phoenix Palladium, Phoenix Marketcity Bangalore, Phoenix Marketcity Pune, Palladium Chennai, Phoenix Marketcity Mumbai and others, have seen significant growth.  

In addition, the residential portfolio’s sales trajectory has improved, owing to greater demand and faster conversions. Over the last three months, shares have experienced a significant rally and have climbed by more than 25%. Established in 1905, Phoenix Mills Ltd is India’s largest retail-led mixed-use developer with a presence across major metros including Mumbai, Bengaluru, Chennai, Pune, Agra, Indore, Lucknow and Ahmedabad.  

It is one of the leading players in the operations and management of malls, construction of commercial and residential properties and hotel businesses in India. It is also planning to spread its wings in the residential sector. Some of the company’s competitors in the industry include DLF Ltd, Godrej Properties Ltd, and Oberoi Realty. 

Keep a close eye on this stock for the upcoming sessions!