Buy Nexus Select Trust; target of Rs 190: Emkay Global Financial

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • NXST's retail consumption growth of 13% yoy in 2QFY27 was driven by broad-based growth across categories, including high-double-digit growth in fashion and jewelry.
  • The company's acquisition pipeline remains strong, with two assets already acquired in FY27 and guidance for 2-3 more acquisitions in the second half of FY27.
  • NXST's commercial NOI grew 16% yoy, while hospitality NOI declined 6% yoy due to renovation.
  • The company targets a rent-to-consumption ratio of 13% over the next 2-3 years, supported by lease renewals and re-leasing spreads.

Thesis Validation Checklist

  • Investors should watch for sustained consumption growth momentum, particularly in the retail segment, over the next 12 months.
  • The successful integration of acquired assets and the progress of ongoing projects, such as the Dombivli and Guwahati malls, will be crucial for NXST's future growth.
  • Any changes in the regulatory environment or unexpected disruptions to the retail or commercial sectors could impact NXST's performance.
  • The company's ability to maintain its target rent-to-consumption ratio and achieve its guidance for acquisitions will be important signals to monitor.