Fusion Finance
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Fusion Finance is navigating a strategic transition towards sustainable, technology-led growth, as highlighted by management's focus on scaling the MSME business and improving asset quality, with GNPA reduced to 2.51%. The company's robust liquidity position and capital adequacy provide a solid foundation for expansion, particularly as it leverages its MFI branch network and invests in digital infrastructure. Vista's financial outlook anticipates accelerating revenue growth and improving margins, supported by disciplined credit practices and upcoming product launches aimed at diversifying revenue streams. However, execution risks related to branch rationalization and maintaining credit discipline in a volatile macro environment remain pertinent. The NBFC sector's favorable growth trajectory, driven by government initiatives and increasing demand for credit, further bolsters Fusion's outlook. Over the next 12-24 months, key opportunities include the successful launch of individual loan products and enhanced operational efficiencies, while headwinds may arise from regulatory changes and competitive pressures. Overall, Fusion Finance is positioned for disciplined growth, albeit with careful monitoring of execution risks and market dynamics
Why We Like This Stock
- Management's focus on scaling the MSME business and improving asset quality supports revenue growth
- Robust liquidity and capital adequacy provide a strong foundation for expansion and margin improvement
- Government initiatives and increasing demand for credit in the NBFC sector enhance growth prospects
Things To Watch Out For
- Execution risks related to branch rationalization and technology adoption could hinder growth
- Regulatory changes may impose constraints on lending practices, impacting profitability
- High competition among NBFCs could pressure margins and affect market share
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,526 | 1,476 | 1,160 | 1,188 | 1,243 |
| Profit Before Tax (Cr.) | 663 | -1,133 | -63 | 42 | 61 |
| PBT Margin | 43.4% | -76.8% | -5.4% | 3.5% | 4.9% |
| Net Profit (Cr.) | 491 | -1,134 | -63 | 31 | 46 |
| Earnings Per Share | 30.4 | -70.2 | -3.9 | 1.9 | 2.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▲ Buy | 240 | 11-Aug-2026 |
| Motilal Oswal | ▲ Buy | 260 | 11-Aug-2026 |
Company Overview
Show Company Profile
Fusion Finance Limited, a non-banking financial company, provides micro finance and MSME lending services in India. The company offers income generation, top up, emergency, and cross sell loans; secured loans; and life insurance products. It provides its services underserved and unserved women in rural and semi-rural areas. The company was formerly known as Fusion Micro Finance Limited and changed its name to Fusion Finance Limited in July 2024. Fusion Finance Limited was incorporated in 1994 and is headquartered in Gurugram, India.