Fusion MicroFinance-Well Placed To Sustain Industry-Leading Profitability: ICICI Securities Initiates Coverage
Fusion, with a decade-long experience in MFI lending space, a preferred player to play on India’s financial inclusion story.
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.
ICICI Securities Report
Fusion Micro Finance Ltd. is a leading non banking financial company-micro finance institution with assets under management of Rs 80 billion (more than 50% compound annual growth rate FY17-22) and borrower base of 3 million (more than 30% CAGR), implying average outstanding per borrower of ~Rs 25,000 (one of the lowest in MFI space) as on Sep-22.
The management has built the organisation with-
diversified operations (presence in more than 18 states as on Sep-22),
calibrated growth led by new customer acquisition,
stable management team along with second line,
high weightage on corporate governance (always audited by Big 4s) and
conservative provision policy (100% provision for 90 plus days past due portfolio under IGAAP).
Pristine asset quality during Fusion Micro Finance's decade long journey, as reflected in gross non performing loan of 3.8% and standard restructured book of 0.5% as on Sep-22, highlights its quality underwriting, proactive risk management and deep understanding of demographics in states where it operates.
Click on the attachment to read the full report:
This 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.