Fusion Microfinance Share Price target 2023 Fusion Microfinance Share Price target 2024 Fusion Microfinance Share Price target 2025 Fusion Microfinance Share Price target 2030
During the subscription period of Fusion Microfinance’s IPO, there were mixed reactions among investors. The IPO was raised by a total of 2,95 times the offer price, while the retail investor segment accounted for 51 per cent of the subscription. Fusion Microfinance’s share price fell 5 per cent during the day.
Fusion Microfinance was initially incorporated as Ambience Fincap Private Limited. It subsequently changed its name to Fusion Micro Finance Private Limited. FMFL is a fast-growing microfinance company that targets rural areas with a strong focus on women. It has a robust underwriting process and has a pan-India presence. It is also supported by marquee investors such as HDFC Life Insurance Company, Kotak Mahindra Life Insurance Company, Aditya Birla Sun Life Mutual Fund, BNP Paribas Arbitrage and Nomura.
Fusion Microfinance has a strong growth outlook, and has good financial ratios. It is expected to reach its Assets Under Management (AUM) by June 30, 2022. The company’s gross loan portfolio has grown at 54 percent CAGR over the past three years. In addition, Fusion Microfinance has a distribution network that helps it offer last-mile connectivity to rural areas. Fusion is also preparing to launch secured loan facility for SMEs. In addition to offering loans, the company provides financial literacy to clients.
Fusion Microfinance has 2.9 million active users. The company operates on a joint liability group-lending model. It has 966 branches in 19 states in India. It has 9.262 permanent employees. FMFL has been rated as CRISIL A-/Stable, which means that the company has good ratings. It also has an effective asset liability management (ALM) system, a well-diversified portfolio, and strong risk management policies. It has also been able to restrict GNPA and NNPA to less than 6 percent and 3 percent, respectively, over the last two years.
FMFL has a strong focus on rural areas, and has a robust underwriting process and strong risk management policies. It also has a pan-India presence, and access to diversified sources of capital. FMFL also maintains high customer acquisition rates and has a healthy operational performance. The company has a good balance sheet and cash flow, and is a strong player in the MFI sector.
The company also faces competition from banks, which are a major competitor for FMFL. However, FMFL has a strong underwriting process and strong execution capabilities. FMFL has also maintained a high customer retention rate of 71.7 percent in the first quarter of fiscal year (FY) 23. FMFL’s gross NPA ratio was the sixth lowest among the top 10 NBFC-MFIs in India during FY22. Nonetheless, NPAs could be a major concern for the company. The company’s operations and financials could be adversely affected by an increase in NPAs.
FMFL’s management team is stable, and they have a proven execution process. FMFL’s management also benefits from a well-diversified portfolio, and a strong focus on rural areas. It is also supported by marquee investors, such as HDFC Life Insurance Company, Kotak, Aditya Birla Sun Life Mutual fund, BNP Paribas Arbitrage, Nomura, and Edelweiss Mutual Fund.