Buy Nexus Select Trust; target of Rs 161: ICICI Securities

ICICI Securitie`s research report on Nexus Select Trust

We attended Nexus Select Trust REIT’s (Nexus) recently held Analyst Meet. The company has unveiled its ``Nexus 2.0: Re-imagining the Future`` strategy. This entails doubling its mall portfolio to 30–35 malls by 2030 and gross leasable area to 18–20msf primarily through an acquisition led strategy. This implies NOI growing 2x to INR 30bn+ by FY30 driven by 8% LTL consumption CAGR.

Outlook

We retain our BUY rating, with a revised Mar’26E DCF based target price of INR 161/share (earlier INR 157), incorporating MBD, Ludhiana asset in our estimates, valuing assets at 6.8% cap rate considering potential value accretion from pipeline assets. At CMP of INR 133, we expect Nexus REIT to deliver NDCF distribution yield of 6.9% in FY26E and 7.4% in FY27E.