Buy The Phoenix Mills Ltd - Kotak

- Focus of the company would shift towards residential launches and debt reduction

- Rentals and occupancies in various market cities are ramping up with High Street Phoenix continuing to perform well on rentals and occupancies.

- Stock has corrected in recent past and provides an opportunity to buy with a 6-9 month view. We thus upgrade our recommendation to BUY from ACCUMULATE earlier.

At current price of Rs 261, stock is trading at 22.2x P/E and 12.3x EV/EBITDA on FY14 estimates. We continue to value the company on sum of the parts valuation and arrive at target price of Rs 293 on FY14 estimates. Our valuations currently do not incorporate higher shareholding in the Pune, Bangalore and Chennai market city. We would incorporate the same post completion of stake increase.

Stock has corrected in recent past and provides an opportunity to buy with a 6-9 month view. We thus upgrade our recommendation to BUY from ACCUMULATE earlier.

Source : Equity Bulls

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