Analysts’ Meeting Projects Up to 64% Upside in Fusion Micro Finance Stock, According to Brokerages

Shares of Fusion Micro Finance Ltd have seen a significant drop of one-third from its 52-week high, but analysts remain optimistic about the shadow lender’s future prospects. The stock, which hit a high of Rs 690.15 in August 2023, has been range-bound recently, but brokerage firms are predicting a potential upside of up to 64% based on the management’s guidance provided during an analysts meet over the weekend.

The company is focused on maintaining healthy growth ratios, targeting key markets, and emphasizing MSME growth. Despite concerns about elevated credit costs, Fusion Micro Finance is confident in its ability to deliver healthy return ratios while keeping credit costs in check. The company aims to scale up its secured lending MSME business and expand its geographic reach to support overall return ratios.

With a 16% year-on-year rise in net profit for the March quarter, Fusion Micro Finance reported positive financial results driven by business expansion and higher earnings. The company’s net interest income and operating profit also showed significant increases, reflecting its strong performance in the market.

Fusion Micro Finance recently entered into a loan agreement with the United States International Development Finance Corporation for a $25 million facility, further supporting its business expansion plans. Analysts from various brokerage firms have reiterated their positive outlook on the stock, with target prices suggesting a potential upside of over 60%.

Despite the recent drop in share price, Fusion Micro Finance remains focused on strengthening its core MFI business and expanding its product portfolio to enhance financial inclusion in rural areas. Investors are advised to consult with a qualified financial advisor before making any investment decisions based on this news.