CLSA has an “underperform’ rating on the stock with a price target of ₹155 per share. The stock ended the previous session at ₹172.17 apiece. The price target implies a potential downside of over 10% from current levels.
The brokerage said the Fusion Finance management has indicated that it will give better clarity on full-year growth only after the first quarter of the financial year 2026. The management is expecting the June quarter disbursal trend to be similar to the March quarter’s.
Fusion Finance’s Provision Coverage Ratio (PCR) remains at 96.5%, with its stage-3 pool being at 7.9% of the company’s Assets Under Management (AUM).
CLSA noted that Fusion Finance’s slippages over the last two quarters have been slightly higher than its peer CreditAccess Grameen’s 11%. However, its write-offs have been triple, that of CreditAccess Grameen’s overall figure, according to the brokerage.
For now, CLSA is working with Fusion Finance’s Assets Under Management (AUM) to grow at 7% and credit costs to remain at 6% for financial year 2026. A successful rights issue provides the brokerage some comfort.
Of the 10 analysts that have coverage on the stock, only two of them have a “buy” rating, while four each have a “hold” and “sell” rating respectively.
Shares of Fusion Finance Ltd declined nearly 1% on Tuesday, May 27, to hit an intraday low of ₹170.55 apiece. The stock has declined 2.5% in the last six months. The stock is down 65% from its 52-week high of ₹490.
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