In this article, we will try to find out the share price target for Fusion Micro Finance in 2023, 2024, 2025, 2030, and 2035 based on financials, company history and various research and brokerage firms reports.
Introduction
Regarding industry, today the rural population contributes about 47% to the GDP, and the bank deposits coming from the rural area are 11% of the company.
Gramin bank credit is just 9% of the total bank credit. This shows a huge untapped growth opportunity in the industry.
Bank credit accounts in the last 6 salons are growing at a CAGR of 17% in urban areas and at a CAGR of 14% in rural areas.
The company’s business is spread across 377 districts in 18 states. It helps the company draw from the economic, political, cultural, or environmental risk factors of a particular state or region.
The strength of Fusion is its technology-driven operations. The company has been able to onboard customers on mobile. The company also provides facilities like paperless loan processing, real-time application tracking using barcodes, real-time credit checks, and cloud computing, among others.
It is the first microfinance institution to integrate mechanisms such as artificial intelligence (AI) and machine learning into its operations.
Recent news
IIFL Securities has initiated coverage on Fusion Micro Finance with a ‘Buy’ call and a TP of Rs 800 per share, implying a 30% upside from Monday’s closing price.
Fusion has acquired 1.7 million new customers in the last three years. With ATS being 47% lower than Credit Access Gramin and lower customer and branch vintages, Fusion is well placed to deliver above-industry AUM growth of 26% CAGR. The company has the lowest geographic concentration at UP and MP and penetration growth in its largest markets.
Quarter 2 Results
- Total sales reported Rs 162.18 crore in Q2 FY24 as against Rs 89.17 crore in Q2 FY23, increased with 81% YoY and 495% QoQ.
- Net profit increased to Rs 119 crore in Q2 FY24 as against Rs 63.2 crore in Q2 FY23, increasing with 89% YoY and 127% QoQ.
- Operating profit is reported at Rs 158.46 in Q2 FY24, increased by 84%% YoY and 559% QoQ.
- Earnings per share (EPS) are reported at 107.80.
- The number of shareholders increased by 11.45% YoY and 0.26% QoQ from 21,870 to 21,931.
Company Overview
Fusion Micro Finance was founded in 1994. Fusion Micro Finance Ltd. is a microfinance company providing small-scale loans to small and medium-sized enterprises to un-served and under-served women in rural and peri-rural areas across India.
Microfinance is a segment of financial services that mainly provides microcredit or small loan services to low-income people or small businesses.
The company has a vast and geographically diverse distribution network, which helps in offering last-mile connectivity to customers in those remote rural areas.
Fusion Micro Finance has reached out to 2.79 million borrowers with 934 branches, 330+ districts across 18 states, and 8716 permanent employees as of March 31, 2022.
93.2% of the company’s customers live in rural areas. The company provides most of its loans and services in North and East India, as 36.4% of the company’s total branch network is in North India and 31.9% in East India.
Total assets under management of the company: out of Rs. 6,785.97 crores, about 75% come from North and East India.
Financials
| Market Cap | 5,580 |
| P/E Ratio | 11.45 |
| Industry P/E | 24.99 |
| Debt to Equity | 2.92 |
| Return on Equity | 17.97% |
| Dividend Yield | 0.00% |
shareholding pattern
| Dec’23 | Sep’23 | June’23 | Mar’23 | Dec’22 | |
|---|---|---|---|---|---|
| Promoters | 57.70% | 67.92% | 68.18% | 68.18% | 68.18% |
| Retail | 15.05% | 12.77% | 11.46% | 13.09% | 14.80% |
| Mutual Funds | 15.76% | 10.70% | 11.38% | 9.86% | 9.63% |
| Foreign Institutions | 6.74% | 5.15% | 5.44% | 5.98% | 5.32% |
| Domestic Institutions | 4.75% | 3.46% | 3.54% | 2.89% | 2.07% |
Fusion Micro Finance share price target for 2023
Fusion Microfinance is one of the top microfinance institutes in India. The company made its debut in the stock market last year, and since then, the stock has been roaring.
| 2023 | Minimum Price Target | Maximum Price Target |
|---|---|---|
| December 2023 | 558 | 638 |
The share price of Fusion Micro Finance is expected to witness a bullish trend in the year 2023, with the maximum share price Rs 638 in December 2023.
The growth percentage for Fusion Micro Finance shares is predicted to be positive, with an upward trend towards the end of the year.
Fusion Micro Finance share price target for 2024
The company’s AUM was Rs 9,712 crore as of June 2023 and is expected to have crossed Rs 10,000 crore by the end of September 2023.
| 2024 | Minimum Price Target | Maximum Price Target |
|---|---|---|
| January 2024 | x | x |
| February 2024 | x | x |
| March 2024 | x | x |
| April 2024 | x | x |
| May 2024 | x | x |
| June 2024 | x | x |
| July 2024 | x | x |
| August 2024 | x | x |
| September 2024 | x | x |
| October 2024 | x | x |
| November 2024 | 150 | 199 |
| December 2024 | 180 | 243 |
The share price of Fusion Micro Finance is expected to witness a bullish trend in the year 2024, with the maximum share price Rs 675 in March 2024 and the minimum share price Rs 150 in November 2024.
Based on current data, the share price target of Fusion Micro Finance in 2024 is positive, and the stock has potential to grow. This should be a good investment recommendation for long-term investors.
Fusion Micro Finance share price target: 2025
| 2025 | Minimum Price Target | Maximum Price Target |
|---|---|---|
| January 2025 | 695 | 756 |
| February 2025 | 712 | 784 |
| March 2025 | 729 | 797 |
| April 2025 | 753 | 836 |
| May 2025 | 734 | 859 |
| June 2025 | 726 | 822 |
| July 2025 | 745 | 847 |
| August 2025 | 750 | 865 |
| September 2025 | 775 | 879 |
| October 2025 | 805 | 885 |
| November 2025 | 815 | 910 |
| December 2025 | 846 | 895 |
The share price of Fusion Micro Finance is expected to witness an up-and-down trend in the year 2025, with the maximum share price Rs 910 in November 2025 and the minimum share price Rs 695 in January 2025.
Based on current data, the share price target of Fusion Micro Finance in 2025 is positive, and the stock has potential to grow. This should be a good investment recommendation for long-term investors.
Fusion Micro Finance share price target: 2030
| 2030 | Minimum Price Target | Maximum Price Target |
|---|---|---|
| January 2030 | 1548 | 1650 |
| February 2030 | 1586 | 1675 |
| March 2030 | 1594 | 1684 |
| April 2030 | 1588 | 1697 |
| May 2030 | 1603 | 1722 |
| June 2030 | 1659 | 1735 |
| July 2030 | 1693 | 1746 |
| August 2030 | 1674 | 1758 |
| September 2030 | 1698 | 1736 |
| October 2030 | 1745 | 1768 |
| November 2030 | 1767 | 1745 |
| December 2030 | 1795 | 1756 |
The share price of Fusion Micro Finance is expected to witness a bearish trend in the year 2030, with the maximum share price Rs 1768 in October 2030 and the minimum share price Rs 1548 in January 2030.
Based on current data, the share price target of Fusion Micro Finance in 2030 is positive, and the stock has potential to grow. This should be a good investment recommendation for long-term investors.
Fusion Micro Finance share price target: 2035
| 2035 | Minimum Price Target | Maximum Price Target |
|---|---|---|
| January 2035 | 3037 | 3388 |
| February 2035 | 3173 | 3422 |
| March 2035 | 3219 | 3405 |
| April 2035 | 3155 | 3445 |
| May 2035 | 3294 | 3475 |
| June 2035 | 3362 | 3466 |
| July 2035 | 3378 | 3479 |
| August 2035 | 3354 | 3521 |
| September 2035 | 3422 | 3558 |
| October 2035 | 3485 | 3560 |
| November 2035 | 3555 | 3672 |
| December 2035 | 3542 | 3722 |
The share price of Fusion Micro Finance is expected to witness a bullish trend in the year 2035, with the maximum share price Rs 3722 in December 2035 and the minimum share price Rs 3037 in October 2035.
Based on current data, the share price target of Fusion Micro Finance in 2035 is positive, and the stock has potential to grow. This should be a good investment recommendation for long-term investors.
Strengths of Fusion Microfinance
Fusion Micro Finance has a well-diversified and extensive pan-India presence.
The company has proven execution capabilities with a strong rural focus.
The company has access to diversified sources of capital and effective asset liability management.
Robust underwriting process and risk management policies.
Fusion Micro Finance has a technologically advanced operating model.
The company has a stable and experienced management team supported by marquee investors.
Weaknesses of Fusion Microfinance
Fusion Micro Finance has risks due to the category of borrowers that it services.
Fusion Micro Finance has a vulnerability to interest rate risks.
Fusion Micro Finance has experienced an increase in the level of its NPAs.
Fusion Micro Finance has the inability to obtain or maintain various statutory and regulatory approvals, licenses, registrations, and permissions to conduct its business.
Fusion Micro Finance lacks access to capital, preventing it from maintaining the required capital-to-risk-weighted asset ratio.
The company may experience threats of fraud and cyberattacks targeted at disrupting its services, such as hacking, phishing, and theft of sensitive internal data or customer information.
Any downgrade of its credit ratings constrains its access to capital and debt markets.
Conclusion
The microfinance sector is experiencing new heights to ride the new growth wave going ahead, with a focus on portfolio resilience amid a structural transformation.
Microfinance Institutions (MFI) grew at a slower CAGR of 15% over FY 2023-24 as compared to its 29% growth over FY 2014–20, largely due to major political and asset-quality headwinds.
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FAQ-
Is Fusion Micro Finance a good investment?
The price trend analysis by Stockmoodys indicates it is strong, which suggests that the price of Fusion Micro Finance is likely to rise in the long term. However, please do your own research before investing.
Is Fusion Micro Finance a good stock for the long term?
Fusion Micro Finance is one of the best shares to hold for the long term. It has the potential to grow at an 18% CAGR for the next 5–6 years.
What is the target price of Fusion Micro Finance in 2023?
The share price of Fusion Micro Finance is expected to witness a bullish trend in the year 2023, with the maximum share price Rs 686 in November 2023 and the minimum share price Rs 574 in October 2023.
What is the target price of Fusion Micro Finance in 2024?
The share price of Fusion Micro Finance is expected to witness a bullish trend in the year 2024, with the maximum share price Rs 764 in September 2024 and the minimum share price Rs 598 in January 2024.
What is the target price of Fusion Micro Finance in 2025?
The share price of Fusion Micro Finance is expected to witness an up-and-down trend in the year 2025, with the maximum share price Rs 910 in November 2025 and the minimum share price Rs 695 in January 2025.
What is the target price of Fusion Micro Finance in 2030?
The share price of Fusion Micro Finance is expected to witness a bearish trend in the year 2030, with the maximum share price Rs 1768 in October 2030 and the minimum share price Rs 1548 in January 2030.