Fusion Microfinance Q3 Results Review- NIM Expands; Credit Costs Elevated From Punjab Portfolio: Motilal Oswal

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Fusion Microfinance Ltd.’s Q3 FY24 profit after tax was up 23% YoY but flat QoQ at ~Rs 1.26 billion, missing our estimate by 7% because of high credit costs. For nine months FY24, PAT grew ~37% YoY to Rs 3.7 billion. Net interest income surged ~34% YoY to ~Rs 3.4 billion (in line), while pre-provision operating profit jumped ~42% YoY to ~Rs 2.6 billion (in line). Net credit costs in Q3 FY24 stood at ~ Rs 940 million, while annualised credit costs rose ~85 basis points QoQ to ~4.0%. Disbursements grew 24% YoY to Rs 27.1 billion despite calibrating its growth in few geographies and halting disbursements in Punjab since December- 23. Asset under management increased by ~24% YoY to ~Rs 107 billion..Fusion currently trades at 1.3 times FY26E price/ book value and we believe its valuations could re-rate as it demonstrates credibility around normalisation in credit costs from FY25 onwards. Maintain 'Buy' with a target price of Rs 720 (based on 1.6 times FY26E P/BV)..Click on the attachment to read the full report:.Titagarh Rail Systems Q3 Results Review - Strong Industry Tailwind to Keep Growth Momentum: Systematix.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Fusion Microfinance Q3 Results Review- NIM Expands; Credit Costs Elevated From Punjab Portfolio: Motilal Oswal

Healthy business momentum despite calibrated growth in few states.

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Fusion Microfinance Q3 Results Review- NIM Expands; Credit Costs Elevated From Punjab Portfolio: Motilal Oswal

Healthy business momentum despite calibrated growth in few states.

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