CLSA downgrades Phoenix Mills; stock plunges

The share price of India’s leading mall developer and operator, Phoenix Mills, fell almost 15 per cent on Monday after the global rating agency-CLSA downgraded the stock recently.

The global rating agency-CLSA downgraded the stock of Phoenix Mills Ltd from ‘buy’ to ‘underperform’ with a target price of Rs 850 per share. Following this, the stock plunged 14.93 per cent to touch an intraday low of Rs 639.25 per share on Monday as against the previous of Rs 751.50 on Friday.

CLSA said in a statement that the government’s effort to curb Coronavirus as well as limit its spread amidst its order to shutdown all malls could impact the company’s near-term earnings.

Meanwhile, the company informed that as a result of the aforesaid order, the footfall in the malls has declined but the authorities are positive due to the long-term growth trajectory.

Phoenix Mills Ltd is engaged in the operation and management of mall construction of commercial and residential property as well as hotel business in India.

At 11.07 am on Tuesday, the stock of Phoenix Mills Ltd is trading at Rs 648.00, down by 3.64 per cent against its previous close of Rs 672.45. Its 52-week high is Rs 979.50 while, its 52-week low is Rs 564.30 on BSE.