ftInvstr
FUSION · Financial Services ₹203.0 +1.63% Mkt Cap ₹3290 Cr undervalued

FUSION

Financial Services Credit Services
₹203.0
+1.63% today · 30d -6.88%
as of 2026-09-04
Price · Daily Candles
“FUSION: DIIs acquire stake despite revenue and profit declines amidst Q4 operational rebound and rights issue.”
Fusion Micro Finance Limited's Q4 2026 saw a significant operational turnaround with operating profit surging 848.15% YoY and OPM expanding 36.11%, even as revenue dipped 9.02% QoQ. Annually, revenues declined 26.78%, with a 3-year net profit CAGR at -67.05%, pointing to ongoing challenges. Domestic Institutional Investors increased their stake by 2.49% QoQ, offsetting FIIs and promoter selling, post a rights issue in April 2025.
BULL CASE
+Q4 2026 operating profit soared by 848.15% YoY, leading to a 36.11% expansion in OPM.
+The company's strong Q4 net profit reached ₹114 Cr.
+DIIs increased their holding by 2.49% QoQ in Q4 2026 to 14.42%, signaling confidence.
+With a current FCF of ₹1145 Cr, the FCF yield stands at 40.34%.
BEAR CASE
Quarterly revenue saw a decline of 9.02% YoY in Q4 2026.
Annual revenue witnessed a significant downturn of 26.78% in FY26.
Net profit recorded a 3-year CAGR of -67.05% till FY26.
Promoters reduced their stake by 0.74% QoQ in Q4 2026.
The stock is trading at a high TTM PE of 173.68, significantly above its forward PE of 6.92, suggesting market uncertainty.
⟳ What Changed
₹ Latest Earnings · Q ending 2026-06-30
REVENUE
₹458 Cr
+5.46% YoY
NET PROFIT
₹62 Cr
OPM
46.69%
+33.44pp YoY
EPS
₹3.86
PE 173.68
Intrinsic value · DCF ₹353.45 · Margin of safety +74.1% (undervalued) · FCF yield 34.79%
◇ Sector Position
FUSION's TTM PE of 173.68 positions it well above peers like BAJFINANCE (30.41) and SHRIRAMFIN (22.35), even as its profitability (ROE not given) lags sector leaders like MUTHOOTFIN (roce_pct 6.92).
PEERPEROCE %
FUSION173.68
BAJFINANCE30.415.38
SHRIRAMFIN22.354.57
PFC5.533.46
+ 2 more peers — sign in to view
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51
SCORE / 100
Overall
6-axis composite of the sections below.
Performance STRONG 75
Valuation STRETCHED 5
Growth DECLINING 28
Profitability HIGH 100
Technicals NEUTRAL 67
Risk ELEVATED 30
Key Stats
TTM PE
173.68
P/B
1.2
52W HIGH
₹243.0
OFF HIGH
-16.46%
MKT CAP
₹3290 Cr
◉ Active Signals
MACDNeutral0.3553
RSI(14)Neutral50.71
Street Consensus
9 analysts
₹201.67
mean target
Low ₹160.0Now ₹203.0High ₹240.0
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