Valuation concerns likely to limit gains for The Phoenix Mills stock

Analysts believe the company's growth trajectory remains intact, but current valuations imply that near-term growth prospects are priced in

From its highs last month, the stock of mall developer and commercial real estate major, The Phoenix Mills is down about 5 per cent. Despite the company’s steady performance in the December quarter, certain brokerages have downgraded the stock, citing concerns regarding its valuation.

From the start of the year, the stock had surged about 30 per cent to its February highs before giving up a third of its gains. It is currently trading at Rs 2,770 a share.

Revenue performance of the company in the December quarter was better than estimates led by the addition of four new malls