Fusion Micro Finance Ltd - Stock Valuation and Financial Performance

BSE: 543652 | NSE: FUSION | Finance - NBFC | Small Cap

Fusion Micro Fin. Share Price

460.20 -6.95 -1.49%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Fusion Micro Fin.

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Fusion Micro Finance stock performance -

mw4me loader
P/E Ratio (SA):
9.69
Market Cap:
4,719.3 Cr.
52-wk low:
378.9
52-wk high:
690.2

Is Fusion Micro Finance Ltd an attractive stock to invest in?

1. Is Fusion Micro Finance Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Fusion Micro Finance Ltd is a average quality company.

2. Is Fusion Micro Finance Ltd undervalued or overvalued?

The key valuation ratios of Fusion Micro Finance Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Fusion Micro Finance Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Fusion Micro Finance Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Fusion Micro Fin.:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Fusion Micro Finance Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Operating Income (₹ Cr.)054.91081852544867208561,1511,7422,172
YoY Gr. Rt. %-NA96.8%71.2%37.6%91.1%48.1%18.8%34.5%51.3%-
Adj EPS (₹ ) 03.47.61.2-9.610.68.85.62.638.648.2
YoY Gr. Rt. %-NA124.2%-84.2%-903.3%NA-16.4%-37%-52.7%1366.9%-
BVPS (₹ )030.139.763.361100.5151.3156.8160.2230.6267.7
YoY Gr. Rt. %-NA31.7%59.5%-3.5%64.7%50.5%3.7%2.1%44%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)01.72.90.5-2.52.51.80.90.34.70

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Net Interest IncomeNA46.9%34.2%51.3%
Adj EPSNANA63.5%1366.9%
BVPSNA30.5%15.1%44%
Share Price - - - 18.6%

Key Financial Ratios

RATIOS \ YEARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Asset Quality Ratio To view Asset Quality Ratio Colour Rating Guide click here
Net NPA to Net Advances (%)0000000000-
Capitalization Ratio To view Capitalization Ratio Colour Rating Guide click here
Capital Adequacy Ratio (%) 0000000000-
Margins
Net Profit Margin (%)09.712.42.2-15.513.49.75.11.922.222.4
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)011.523.42.9-16.8157.73.61.721.318

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 19.40%

Total Income has increased 34.23 CAGR in last 3 years

Net Profit has increased 63.54 CAGR in last 3 years

Total income growth is good in last 4 quarters

No data to display

Latest Financials - Fusion Micro Finance Ltd.

Standalone Consolidated
TTM EPS (₹) 48.2 -
TTM Sales (₹ Cr.) 2,172 -
BVPS (₹.) 267.7 -
Reserves (₹ Cr.) 2,603 -
P/BV 1.75 -
PE 9.69 -
From the Market
52 Week Low / High (₹) 378.85 / 690.15
All Time Low / High (₹) 321.40 / 690.15
Market Cap (₹ Cr.) 4,719
Equity (₹ Cr.) 101
Face Value (₹) 10
Industry PE 30.6

Management X-Ray of Fusion Micro Fin.:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *2.362.362.362.362.78
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Fusion Micro Fin.

Adj EPS (Rs.)

Total Income (Cr.)

ROE (%)

BVPS (Rs.)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Income551102012675297308731,2061,808
Interest Income551081852544867208561,1511,742
Other Income 0216134310175466
Expenditure 47881963214416308161,1811,296
Interest Expense 284897137244338375500651
Operating Expenses 17366795147195217309439
Provisions 2431904998224372206
Exceptional Items 000000000
Profit Before Tax 8225-54881005724512
Taxes 391-142330133125
Profit After Tax 5134-3965704422387
Adjusted EPS (₹)3.47.61.2-9.610.68.85.62.638.6
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Equity Capital49732232586231,1991,2461,3382,322
Share Capital 1820374462797983100
Reserves 31531852145611,1201,1671,2552,222
Minority Interest000000000
Long Term Borrowings1162666099791,4012,7033,9835,5556,701
Current Liabilities 1532723767071,362307533311263
Trade Payables000004113781
Short term borrowings0018101972403771340
Other Liabilities00-18-101-97-244-389-172-81
Total Liabilities 3186111,2081,9433,3864,2095,7617,2049,286

Assets

Non Current Asset 1081601895257503,3634,3935,9758,107
Loan Asset 901271354396863,3434,3615,9188,042
Other Non Current Asset 183353866420335766
Current Asset 2104501,0161,4152,6338471,3681,2251,179
Current Investment00211000000
Other Current Asset2104508061,4152,6338471,3681,2251,179
Total Assets 3186111,2081,9433,3864,2095,7617,2049,286

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity -128-237-258-597-964-749-793-1,641-1,663
Cash Flow From Investing Activity -8-18-199184-420101818
Cash Flow From Financing Activity 1632625787411,3495451,4591,4181,584
Net Cash Flow 277121329381-184676-204-61
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Operational & Financial Ratios

EPS (₹)381-101196339
DPS (₹)000000000
BVPS (₹)30406361101151157160231

Performance Ratios

ROA (%)1.72.90.5-2.52.51.80.90.34.7
ROE (%)11.523.42.9-16.815.07.73.61.721.3
ROCE (%)11.816.011.85.513.011.88.88.214.3

Valuation Parameters

Price/Book(x)0.00.00.00.00.00.00.00.01.7

Fusion Micro Finance Ltd Stock News

Fusion Micro Finance Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Fusion Micro Fin. on 28-Mar-2024 16:01 is ₹460.2.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Fusion Micro Fin. stood at ₹4,719.3.
The latest P/E ratio of Fusion Micro Fin. as of 28-Mar-2024 16:01 is 9.69.
The latest P/B ratio of Fusion Micro Fin. as of 28-Mar-2024 16:01 is 1.75.
The 52-week high of Fusion Micro Fin. is ₹690.1 and the 52-week low is ₹378.9.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Fusion Micro Fin. is ₹2,172 ( Cr.) .

About Fusion Micro Finance Ltd

The Company was originally incorporated as ‘Ambience Fincap Private Limited’ on September 5, 1994 at New Delhi, India as a private limited company under the Companies Act, 1956, and was granted a certificate of incorporation by Registrar of Companies, Delhi and Haryana at New Delhi (“RoC”). On January 9, 2003, the RBI granted a certificate of registration bearing registration no. B-14.02857 to the Company, for the registration of the Company as a non-deposit accepting non-banking financial company under Section 45IA of the Reserve Bank of India Act, 1934. Subsequently, the name of the company was changed to ‘Fusion Micro Finance Private Limited’ and a fresh certificate of incorporation, dated April 19, 2010 was issued by the RoC to describe the business of the Company, post which the RBI granted a certificate of registration dated May 19, 2010 reflecting the change of name. The Company was granted an ‘NBFC – Microfinance Institution’ status by the RBI with effect from January 28, 2014 and a modified certificate of registration bearing registration no. B-14.02857 was issued by the RBI to this effect. The name of the Company was further changed to Fusion Micro Finance Limited upon conversion to a public limited company and a fresh certificate of incorporation was issued by the RoC on July 20, 2021, post which a fresh certificate of registration as an NBFC (not accepting public deposits) dated October 1, 2021, was issued by the RBI reflecting the change in name of the Company.

Fusion Micro Finance founded with the core idea of creating opportunities at the bottom of the pyramid, and it does so by providing financial services to unserved and underserved women in rural and peri-rural areas across India. Its network and services have improved accessibility to formal credit at affordable prices, thereby positively impacting the lives of its customers in rural India, and it was one of the youngest companies (in terms of getting an NBFC-MFI licence) among the top NBFC-MFIs in India in terms of AUM as of June 30, 2022. It has achieved this through its commitment over the years to its key pillars of growth comprising customer centricity, strategic geographic diversification with a rural focus, embracing technology for growth, emphasis on nurturing and developing its personnel, good corporate governance, stakeholder management and prudent risk management, as well as ability to raise growth capital through the support of marquee investors even during difficult macroeconomic conditions.

The company has prioritized organic geographic diversification since its inception in 2010, with a focus on strategic management of state concentration risk by expanding into underpenetrated rural areas that offer significant growth opportunities. As a result, it has achieved a significant footprint across India, where it has extended its reach to 2.90 million active borrowers which were served through its network of 966 branches and 9,262 permanent employees spread across 377 districts in 19 states and union territories in India, as of June 30, 2022. Its significant footprint of active borrowers and branch network puts it in a vantage position to further penetrate and deepen its presence in areas in which it has established branch infrastructure but remain relatively untapped and also to expand into new regions that have significant growth potential. Its extensive and geographically diverse distribution network allows it to offer “last-mile” connectivity to its customers in remote rural areas.

Business area of the company

Fusion Micro Finance as an organization was set-up in 2010 & is a registered NBFC - MFI which operates in a Joint Liability Group lending model of Grameen. Its clients comprise mainly of women living in rural and semi-urban areas. Its focus is reaching out to unbanked and providing financial services to women entrepreneurs belonging to the economically and socially deprived section of the society. Its responsibilities are not restricted merely to financial support but also to acquaint the clients to manage their financials by disseminating Financial Literacy to them

Key awards, accreditations, and recognition

  • 2014:  Awarded ‘Best MFI of the Year 2014’ at ‘Microfinance India Awards 2014’ instituted by ACCESS
  • 2016:  Awarded ‘Star of the Industry Awards’ under BFSI category from the Star Group.
  • 2016: Recognized as ‘S.T.A.R (Socially Transparent and Responsible) MFI 2015’ by MIX.
  • 2017 : Awarded ‘Best Usage of ICT in Rural Development’ award at Business World Digital India Summit, 2017.
  • 2017: Recognized as one of the ‘10 most valuable Non-banking Financial Companies’ by Insight Success.
  • 2018: Awarded ‘Best NBFC - MFI in Customer Literacy and Capacity building’ at MFIN Awards, 2018.
  • 2018: Awarded ‘Champions of Rural Markets 2018’ award at The Economic Times Rural Strategy Summit, 2018.
  • 2018: Awarded ‘Project of the Year Award 2018’ from the Project Management Institute, India.
  • 2019: Awarded ‘CSR Leadership Award’ by UBS Forums at CSR Summit & Awards 2019.
  • 2019: Awarded ‘Best BFSI Brand’ at India UAE Strategic Conclave 2019.
  • 2019: Awarded ‘Dream Company to Work’ in ‘Microfinance’ category from ABP News at BFSI Conclave, 2019.
  • 2020: Awarded ‘Best Workplaces in Microfinance’ by Great Place to Work Institute India.
  • 2020: Awarded ‘Financial Inclusion & Literacy Leadership Award 2020’ from AWOKE India Foundation at India Financial Literacy Conclave 2020 in the category ‘Institution’.
  • 2020: Ranked 150th in the Special Report Financial Times High-Growth Companies Asia-Pacific 2020.
  • 2021: Awarded ‘Great Workplace’ certification as well as winning a spot for the first time in the ‘Top 30 BFSI Workplaces’ List by Great Place to Work Institute India.
  • 2021: Recognized among the Fortune India Next Fortune 500 companies with the potential to transition from a mid-size marvel to a successful Fortune 500 company by Fortune India.
  • 2022: Awarded the ‘Silver award - Covid Indigenous Response Project ‘at the CSR Health Impact Awards from the IHW Council.
  • 2022: Awarded for ‘Financial Inclusion & Future Services in India – 2030’ in the lending category and small NBFC class by Assocham at the 17th Annual Summit & Awards Banking and Financial Sector Leading Companies.

Major events and milestones

  • 1994: The Company was incorporated as Ambience Fincap Private Limited.
  • 2010: Started operating under the brand name ‘Fusion’.
  • 2010: First investment by RIF North 2 in the Company.
  • 2013: First investment by NMI Frontier Fund and the other foreign shareholder of the Company at that time.
  • 2014: Issuance of first Listed Non-Convertible Debentures.
  • 2015: Expanded operation in up to five states.
  • 2015: First investment by Oikocredit Ecumenical Development Cooperative Society U.A. and Belgian Investment Company in the Company.
  • 2016: First investment by Creation I and Global Impact Funds, S.C.A., SICAR and certain existing shareholders, in the Company.
  • 2017: Achieved AUM of over Rs 1,000 crore.
  • 2018: Expanded operations up to 18 states
  • 2018: First investment by Honey Rose, which is directly owned by certain private equity funds managed by Warburg Pincus LLC and follow-on round by Creation I in the Company
  • 2018: Issuance of market-linked debentures.
  • 2019: Follow-on round from Honey Rose, which is directly owned by certain private equity funds managed by Warburg Pincus LLC and Creation II.
  • 2021: Reached 2,200,000 active loan clients through 725 branches across 18 states.
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