Phoenix Mills Ltd - Concerns linger - Emkay

Reco: ACCUMULATE
CMP: Rs 182
Target Price: Rs 221

- Occupancy ramp-up at Market City (MC) projects disappoints; interest cost outflow higher than or equal to the rental income across projects.

- Shangri-La hotel development cost increases from Rs 8.5bn to Rs 10.0bn. This escalation erases value by Rs 6/share as we don't see any change in our revenue estimates.

- Bangalore (W) residential project's phase 1 comprising of 0.7msf is expected to be launched in Q2FY13 at expected realisation of Rs 6500/sf.

- Downgrade TP to Rs 221, maintaining Accumulate rating. The value of HSP @ Rs 145/share provides a strong valuation base.

Source : Equity Bulls

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