Nexus Select Trust: Risk Reward Update

Research evidence excerpt

Nexus Select Trust: Risk Reward Update

UpdateM

RiskRisk RewardReward– Nexus-SelectNexusTrustSelect(NEXE.NS)Trust (NEXE.NS)

Growth led by strong consumption momentum and active acquisitions

PRICE TARGET Rs180.00 OVERWEIGHT THESIS

Base case scenario value, reflects 9.2% YoY DPU growth for F27. We apply a target yield of ▪We expect consumption growth

5.5%, vs. the long-term average (since listing in May 2023) of 6.1%. We arrive at our target momentum to be sustained, and Nexus

yield by applying a 1ppt negative spread (based on historical trend) to the Indian 10-year should benefit with retail assets forming

Treasury yield. 88% of revenue.

balance sheet is strong with LTV of Rs177.36 ▪Its

18%, which should support target of adding

Consensus Price Target Distribution Rs168.00 Rs189.00 7-9msf of malls (current operating area of MS PT

10.6msf) over next 5 years.Source: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates

▪FCFE yield appears better compared to

the only other company in the segment,

Phoenix Mills.

RISK REWARD CHART ▪Nexus has low earnings risk because of

long-tenure leases, embedded growth

INR potential through contractual escalations,

mark-to-market upside, new leasing and

Rs200.00Rs200.00(+25.59%)Rs200.00(+25.59%)(+25.59%) tenant turnover linked-rental

200 ▪Based on our revised target yield,

Rs180.00Rs180.00(+13.03%)Rs180.00(+13.03%)(+13.03%) valuation remains attractive..

Rs159.25Rs159.25Rs159.25

Consensus Rating Distribution

Rs140.00Rs140.00(-12.09%)Rs140.00(-12.09%)(-12.09%) 100%Overweight

100 0% Equal-weight

0% Underweight

50 MS Rating

Source: Refinitiv, Morgan Stanley Research

MAY '25 NOV '25 MAY '26 MAY '27 Risk Reward Themes

Key: Historical Stock Performance Current Stock Price Price Target Self-help: Positive