Fusion Micro Finance - Diversified Product Offerings, Robust AUM Growth: HDFC Securities Initiates Coverage

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Retail Research.In last six years, the asset under management of Fusion Micro Finance Ltd. has grown at a compound annual growth rate of 43%, while during the same period it has reported a healthy 28% CAGR in borrowers. Overall, FY23 has been a year full of milestones for the company. It has registered a 37% yearly growth in its AUM, reported its highest ever yearly profit after tax of Rs. 387 crores (up 1680% YoY), organically added ~0.8 million customers taking the total to 3.5 million spread across 20 states. Over the last four quarters, the company has continuously delivered return on asset above 4% and return on equity above 20% on account of robust margins and declining provisions. We expect the company to grow its AUM at 26% CAGR while net interest income and net profit are expected to grow at 28% and 31% CAGR respectively over FY23-25E. return on average asset is estimated to improve to 4.9% in FY25E from current 4.6% in FY23. The asset quality should improve further from here on as collection starts stabilizing. The company is trading at 1.48 times FY25E adjusted book value, which is at a considerable discount to its peers. Looking at the growth opportunities we believe that the discount will gradually narrow..Click on the attachment to read the full report:.Zen Technologies - Strong Order Book Brings Better Earning Visibility: HDFC Securities Initiates Coverage.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Fusion Micro Finance - Diversified Product Offerings, Robust AUM Growth: HDFC Securities Initiates Coverage

Fusion Micro Finance is the second largest and one of the fastest growing NBFC-MFIs.

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Fusion Micro Finance - Diversified Product Offerings, Robust AUM Growth: HDFC Securities Initiates Coverage

Fusion Micro Finance is the second largest and one of the fastest growing NBFC-MFIs.

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