Brokerage firm Emkay Global has retained its ‘Buy’ rating on Nexus Select Trust with a target price of Rs 190 per unit. The trust reported an 8% increase in Net Operating Income for the second quarter of fiscal 2027, driven by strong retail consumption. Investors may track the upcoming distribution of Rs 2.367 per unit, with the record date set for November 6, 2026.
Emkay Global Financial has maintained its ‘Buy’ rating on Nexus Select Trust, keeping the target price at Rs 190 per unit. This outlook follows the trust’s financial performance for the second quarter of the 2027 fiscal year, where steady growth in core retail assets helped offset softness in other segments.
The trust reported a Net Operating Income (NOI) of Rs 504 crore for the quarter, marking an 8% increase compared to the same period last year. A key driver for this performance was a 13% year-on-year rise in retail consumption, which signals consistent demand across the trust's major retail properties. This retail strength remains the primary anchor for the trust’s earnings stability.
While the retail division performed well, the hospitality segment experienced a 6% decline in NOI. This dip is tied to ongoing, capital-intensive renovations within the hospitality portfolio. Investors may monitor whether these upgrades successfully translate into higher revenue once the construction work is completed.
For income-focused investors, the trust has declared a distribution of Rs 2.367 per unit for the quarter ended September 30, 2026. The record date for this payout is November 6, 2026. On the balance sheet side, the trust holds a loan-to-value (LTV) ratio of 18% and a cost of debt at 7.2%, reflecting a relatively stable financial position despite the ongoing project spending.
Looking ahead, the management has indicated plans to acquire two to three additional assets during the current fiscal year. The success of this growth strategy will depend on the trust's ability to integrate these assets effectively. Investors should also watch for refinancing risks, as a portion of the debt includes non-convertible debentures and commercial papers with bullet maturities, which may require active management as they come due.