MoneyWorks4Me

Check Before You Invest : Fusion Finance Ltd

BSE: 543652 NSE: FUSION ISIN: INE139R01012
  |   Sector:  BFSI   |   Industry:  Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does Fusion Finance Ltd belong to?
Fusion Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.
Q.2 Is Fusion Finance Ltd a good quality company?
Fusion Finance Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Fusion Finance Ltd undervalued or overvalued?
Fusion Finance Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 0-year
Historic Median
Price to Earnings - 84.86
Price to Book - 7.29
Price to Sales - 16.04
EV to EBITDA - 58.22
Q.4 Is Fusion Finance Ltd a good buy now?
Fusion Finance Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.

  • How efficiently has it grown and managed operations?

    By checking its Total Asset growth.

  • How strong is its Capital position and Asset Quality?

    By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Fusion Finance Ltd?
Fusion Finance Ltd Operating Income growth is % for FY-, which is in line with its --year CAGR of N/A%, indicating stable growth.

Q.2 Does its ROIC exceed its WACC?
Fusion Finance Ltd return on invested capital (ROIC) is % for FY-, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.3 Total Asset growth of Fusion Finance Ltd?
Fusion Finance Ltd Total Asset growth is 14.71% for FY-, which is below its 0-year CAGR of 19.66%, indicating slower growth.

C: How strong is the bank’s capital position and asset quality?

Q.4 Capital Adequacy ratio of Fusion Finance Ltd?
Fusion Finance Ltd Capital Adequacy ratio (CAR) is 36.46% for FY-, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

D: Promoter shareholding and pledge status of Fusion Finance Ltd?

Q.1 Promoter shareholding and pledge status of Fusion Finance Ltd?
Promoters hold 53.96% of the Fusion Finance Ltd, with 1.15% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Fusion Finance Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Fusion Finance Ltd vs Industry Peers?
Fusion Finance Ltd AUM CAGR is %, compared to the 0-year industry median CAGR of %, indicating stable growth and maintaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Fusion Finance Ltd vs industry peers
Fusion Finance Ltd profit metrics are in line with the industry median level of 0%, indicating similar profitability compared to peers.
Profit Metrics
Current Level 0-year
Industry Median
NPM (%) - -
PPOP (%) - -
RoA (%) - -

Q.3 Operating efficiency of Fusion Finance Ltd vs industry peers?
Fusion Finance Ltd ROCE () is below the industry median of (7.31); while the current ROE (14.77) are above than the 5-year average Industry ROE (). This shows that the business is positioned in the middle quartile of the industry.
Operating Efficiency
Current Level 0-year
Industry Median
NPM (%) - -
PPOP (%) - -
RoA (%) - -
ROCE (%) - 7.31
ROE (%) - -

Valuation & price assessment

Q.1 Stock return of Fusion Finance Ltd over the last decade?
Over the last 3 years, the stock has delivered a CAGR of -31.43% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - -31.4% -2.8%
Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings - 84.86 -
Price to Book - 7.29 -
Price to Sales - 16.04 -
EV to EBITDA - 58.22 -
Q.3 Valuation ratios of Fusion Finance Ltd vs historical and industry averages?
The current Price-to-Book (P/B) ratio of 0 is lower than its historical median of 7.29, indicating that the stock is trading below its historical average valuation.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: