Nisus Finance Ltd

About Nisus Finance

Incorporated in 2013, Nisus is engaged in real estate financing. Its two primary revenue segments are Transaction Advisory Services, which assists developer partners with transactions such as sales, joint development and capital structuring, and Fund & Asset Management. Its schemes include RECOF-I, RESO-I and High Yield Growth Fund, targeting Tier 1, 2 and 3 cities in India as well as the UAE market. The corporate structure includes Nisus Fincorp (NBFC), Nisus Finance & Investment Managers LLP, Nisus BCD Advisors LLP and associate entities.

Funds and Deal Activity

• India funds: RECOF-I and RESO-I had cumulatively ~INR 1,000 Cr. of AUM as on Mar’24, with additional transactions of INR 290 Cr. concluded in H1-FY25. The report notes that deployment is expected to moderate in the near term with exits in H2-FY25.
• UAE strategy: The fund strategy is to invest in distressed completed rent-yielding assets. Investments of INR 455 Cr. in Dubai were in advanced stages of conclusion, alongside a signed LOI of INR 200 Cr.
• Reported exits: The deal tracker records exits involving a Shapoorji Pallonji Real Estate subsidiary (Suvita), Vishwasangam and Shriram Properties (Chirping Ridge Project). The stated deal sizes were 105, 22 and 40, respectively.
• Potential earnings contribution: The report indicates that exits of ~INR 167 Cr. in H2FY25 may add carry income, with an indicative 15% carry over a hurdle rate of 12% on the AUM as mentioned by management in the Dec’24 con-call. Realized capital may also be redeployed into new assets.

Nisus Finance Key Financials

Credit Rating: Not Rated

Stock Data

The report does not provide a share recommendation, target price or upside.

Shareholding Pattern

Key Risks

• Receivables: Transaction advisory has lumpy receivables. Outstanding receivables were ~INR 31 Cr. as on Sep’24, compared with INR 10.5 Cr. as on Mar’24.
• AUM and fees: Change in AUM as on Mar’25, alongside expected Dubai transaction closures, is a key monitorable because management fees are linked to AUM size; the report gives an indicative fee range of ~1.5% to 2% p.a.
• Borrower repayment: Default by any borrower and recovery thereof is identified as a key risk in the business.

Our View

The update focuses on the potential contribution of H2-FY25 deal exits through carry income, investment gains and redeployment of capital. It also flags receivables, AUM changes and borrower repayment as areas to monitor. No share recommendation or target price is stated.

Standard disclosures

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• Nature of financial interest in subject company, if any –Nil
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Regulatory disclosures

Minerva Capital Research Solutions is an independent investment advisory firm founded by Nishant Gupta(SEBI registration no. INH000018896).

Registration granted by SEBI and certification from NISM in no way promise or guarantee that the research recommendation will provide any assured, minimum or risk-free return to the investors.

The research report serves as general information and does not account for individual investment goals, financial situations, or needs. Minerva Capital Research Solutions strives to provide reliable and comprehensive information, sourced from what are believed to be trustworthy channels. However, this information has not been independently verified by Minerva Capital Research Solutions or its analysts, and no guarantees are made regarding its accuracy or completeness. The opinions expressed in this report reflect the views of the research analyst at the time of publication and may change over time. Minerva Capital Research Solutions and its affiliates as on date of publication of this report may or may not hold any positions in the securities discussed. The views presented are general and do not consider individual risk tolerance or investment objectives; therefore, readers should seek independent professional advice before making investment decisions. Minerva Capital Research Solutions does not guarantee a favorable outlook for any specific industry or sector and urges investors to consider all relevant risk factors, including their financial circumstances, before investing. The analyst certifies that their views accurately represent their personal opinions on the companies discussed and that no part of their compensation is tied to specific recommendations made in this report. This material should not be interpreted as an offer or solicitation to buy or sell securities in jurisdictions where such offers would be illegal. Consequently, brokerage and investment services described herein are not available to Canadian or U.S. persons. Distribution outside India requires prior written consent. This Research Report assumes that the recipient will assume all risks associated with its contents. If there are any disagreements or dissatisfaction with this report or its disclaimer, the only recourse is to cease using it. Minerva Capital Research Solutions and its affiliates will not be liable for any direct or indirect losses resulting from the use of this report. Recipients are required to adhere to these restrictions. The material is for the personal use of authorized individuals and does not constitute a solicitation or offer to buy or sell any securities in jurisdictions where such actions would be illegal.

For any queries or grievances: Mr. Nishant Gupta | Email: nishant.gupta@mcapital.in | Contact Number: 8171433387 | Website: www.mcapital.in | Twitter: @Mcapital_In

Rating rationale

Minerva Capital Research Solutions endeavors to provide objective opinions and recommendations. Ratings are assigned to stocks according to their fair value vs current market price and then categorizes them as Buy, Hold, Reduce, Sell. The performance horizon is one year unless specified and fair value is defined as analyst’s valuation for a stock.

• Buy:> 15%
• Hold: -5% to 15%
• Reduce: -15% to -5%
• Sell: <-15%