Archive · 30 Jun 2025
Brokerage Recommends 'Reduce' for Fusion Finance, Sets Target Price
A financial analysis of Fusion Finance suggests a cautious outlook.
The new CEO is concentrating on improving the quality of assets and increasing profitability.
Despite an investment of ₹800 crore, analysts expect ongoing financial challenges.
Credit costs are predicted to be elevated, impacting profit margins.
The company is working on strengthening credit practices and recovery efforts.
Overall, analysts advise caution with the stock.
Brokerage maintains a 'Reduce' rating for Fusion Finance with a target price of ₹170.
The new CEO aims to focus on asset quality and profitability.
Capital infusion of ₹800 crore by investors eased going concern issues.
Credit costs are expected to remain high, moderating RoA/RoE.
The company plans to improve credit underwriting and expand its recovery team.
- Who
- Brokerage, Fusion Finance, Sanjay Garyali (CEO).
- What
- Brokerage maintains a 'Reduce' rating for Fusion Finance.
- When
- Published on June 30, 2025.
- Where
- Not explicitly stated.
- Why
- Concerns about credit costs and asset quality.
Analyst's Concerns
Company's Strategy
Financial Performance
Analyst's Concerns
Elevated credit costs and expected moderation in RoA/RoE.
Company's Strategy
CEO focus on asset quality, profitability and disciplined portfolio growth.
- Target Price
- ₹170
- CMP
- ₹198.65
- Capital Infusion
- ₹800 crore
- Expected Credit Cost
- Around 5%
- MFI Portfolio in Bihar
- 19%
