1. Fusion Micro Finance
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100% Buy

Fusion Micro Finance Share Price

FUSION

₹442.65+₹1.25 (0.28%) TodayLast updated on 16 Jul, 2024 | 15:46 IST
₹440.00₹445.95
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Company overview

Financial performance

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Market cap

Market Cap Switch₹4,452 Crs

Open

₹441.45

Close

₹441.40

Circuit range

₹531.15 - ₹354.15

Day range

₹440.00 - ₹445.95

Year range

₹416.20 - ₹691.00

Volume

1,12,818

Avg. traded

₹442.60

Revenue (12m)

₹2,264 Crs

Fusion Micro Finance

New Delhi-headquartered Fusion Micro Finance Limited is a Non-Banking Finance Company in the private sector. The company mainly extends financial services to women entrepreneurs from economically and socially backward sections in rural and semi-urban pockets.

Its Asset Under Management (AUM) stood at ₹9,296 crore derived from a client base of 0.35 crore serviced through 1,086 branches spread across 20 states in the country in FY23.

The company was originally incorporated on September 5, 1994 as Ambience Fincap Private Limited. It received the certificate of registration from the Reserve Bank of India on January 9, 2003, as a non-deposit accepting NBFC. The company was subsequently renamed Fusion Micro Finance Private Limited in 2010. The same year it received its first foreign investment from Mauritius-based RIF North 2.

It was granted Non-Banking Finance Company – Micro-Finance Institution (NBFC-MFI) status on January 28. 2014. Within months, the company came up with its first Listed Non-Convertible Debentures. In 2017, the company’s Asset Under Management (AUM) crossed ₹1000 crore.

In FY18, Fusion Micro Finance Private Limited expanded its business to 18 states and issued market-linked debentures. The company started its MSME vertical in December 2019. In 2021, Fusion Micro Finance Private Limited was converted into a public limited company and renamed Fusion Micro Finance Limited.

The company successfully floated its initial public offering (IPO) in FY23 and its shares were listed on BSE Limited and National Stock Exchange from November 15, 2022.

As of December 31, 2023, the company’s promoter shareholding has come down to 57.7% from 68.18% at the end of FY2. During the same period, the public shareholding went up from 31.82% to 41.82%. The employee trusts held 0.48% of the shares on December 31, 2023. In the public segment, foreign institutional investors raised their shareholding from 5.98% at the end of FY23 to 6.74%. During the same period, the domestic mutual funds increased their stake from 9.86% to 15.76%.

Business operations

Fusion Micro Finance operates in a joint liability group lending model. The company forms a small group of 10 to 30 women and gives loans to the group as a whole making each of the members jointly liable for the loan drawn by them.

In its microfinance business, the company offers choices in the form of income generation loans, top-up loans, emergency loans and cross-sale loans. The last one is extended to existing customers for use as livelihood and productivity-improving means.

For the MSMEs, the company provides unsecured short-duration term loans and secured long-term and long-term loans for both running businesses or to meet capital requirements for purchasing machinery.

The company focuses on growing its business through the organic geographic diversification route for which it has penetrated the rural areas. The rural portfolio comprises 93% of the company’s business.

It added 152 branches and 8 lakh new customers and registered a year-on-year 37% growth in AUM and 29% increase in customers in FY23. Around 37.5% of the company’s branches are located in north India, and 31.2% in the east. It disbursed 38.9% of the loans in the east, and 36.9% in the north, with central and southern states accounting for 17.5% and 6.7% of the disbursements respectively.

In terms of business, the company’s top five strongholds are Bihar, UP, Odisha, Madhya Pradesh and Tamil Nadu. It recently forayed into Karnataka by opening 11 branches.

The micro-finance arm disbursed ₹8,375.16 crore, earning a ₹1,743.52 crore revenue in FY23. In MSME vertical, Fusion Micro Finance disbursed ₹220.95 crore loans, netting a revenue of ₹56.45 crore in FY23.

The market capitalisation of Fusion Micro Finance Ltd stood at over ₹5,400 crore as of February 28, 2024. Fusion Micro Finance share price has increased by over 30% in the last one year.

Financial Highlights

– The total revenue from operations increased by over 51% to ₹1600 crore in FY23 from ₹1064 crore in FY22. – The company's profit after tax (PAT) jumped manifold to ₹387 crore in FY'23 from ₹22 crore in FY22. – Fusion Micro Finance’s earnings per share (EPS) increased to ₹43.29 in FY23 as against ₹2.67 in FY22.

Fusion Micro Finance Key indicators

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52 week high

₹691.00

52 week low

₹416.20

P/E ratio

8.85

P/B ratio

1.57

ROE

21.27%

ROCE

14.34%

Dividend yield

--

Debt/Equity ratio

2.93

EPS

38.58

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Investment checklist: (3/6)

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Safety factor

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Debt vs Equity

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Profit factor

The investment checklist helps you understand a company's financial health at a glance and identify quality investment opportunities easily

Analyst ratings:

Buy

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Buy

100%

Hold

0%

Sell

0%

This analysis is based on the reviews of 10 experts in the last 7 days

Fundamentals

Financial ratios

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  • Profitability

  • Operational

  • Valuation

Operating profit margin

67.17%

Net profit margin

22.23%

ROE

21.27%

ROA

4.7%

ROCE

14.34%

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Fusion Micro Finance Shareholder returns

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1 day

-1.70%

1 week

-1.34%

1 month

-10.99%

3 months

-7.18%

1 year

-27.58%

3 years

+35.90%

5 years

+35.90%

Fusion Micro Finance Share Price history

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DayOpenCloseDay’s change
Tue, Jul 16 2024
₹441.45
₹442.65
+0.28%
Mon, Jul 15 2024
₹455.00
₹441.40
-1.70%
Fri, Jul 12 2024
₹442.60
₹449.05
+2.41%
Thu, Jul 11 2024
₹443.85
₹438.50
-0.34%
Wed, Jul 10 2024
₹443.00
₹440.00
-0.19%
Tue, Jul 9 2024
₹445.60
₹440.85
-1.46%
Mon, Jul 8 2024
₹453.95
₹447.40
-0.60%
Fri, Jul 5 2024
₹461.95
₹450.10
-2.32%

Shareholding info

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Promoters (57.71%)

Mutual Funds (16.42%)

Retail and other (13.04%)

Foreign institutions-FII (5.97%)

Other domestic institutions (6.86%)

Promoters

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