Fusion Finance Ltd (FUSION) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

CreditAcc. Gram.

Muthoot Microfin

Satin Creditcare

Fusion Finance

Spandana Sphoort

Tour. Fin. Corp.

Indian Renewable

HUDCO

IFCI

Guj. State Fin.

Spandana Spho.PP

Why is Fusion Finance Ltd ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 0.28%

Poor long term growth as Net Sales has grown by an annual rate of -1.28% and Operating profit at -25.59%

With a growth in Net Profit of 712.74%, the company declared Very Positive results in Mar 26

PBT LESS OI(Q) At Rs 31.29 cr has Grown at 138.5% (vs previous 4Q average)
PAT(Q) At Rs 114.19 cr has Grown at 272.4% (vs previous 4Q average)
PBDIT(Q) Highest at Rs 165.59 cr.

With ROE of 0.6, it has a Very Expensive valuation with a 1.2 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.23%, its profits have risen by 101.1% ; the PEG ratio of the company is 2.2

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 2.33% over the previous quarter and collectively hold 19.16% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Fusion Finance should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Fusion Finance for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Fusion Finance

-4.23%

-0.10

43.93%

Sensex

-8.53%

-0.64

13.26%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.28%

EBIT Growth (5y)

-25.59%

Net Debt to Equity (avg)

2.27

Institutional Holding

19.16%

ROE (avg)

0.28%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

222

Industry P/E

Price to Book Value

1.25

EV to EBIT

15.83

EV to EBITDA

15.48

EV to Capital Employed

1.10

EV to Sales

3.96

PEG Ratio

2.20

Dividend Yield

ROCE (Latest)

6.96%

ROE (Latest)

0.56%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

27What is working for the Company

PBT LESS OI(Q)

At Rs 31.29 cr has Grown at 138.5% (vs previous 4Q average

PAT(Q)

At Rs 114.19 cr has Grown at 272.4% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 165.59 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 39.05%

DEBT-EQUITY RATIO(HY)

Lowest at 2.27 times

EPS(Q)

Highest at Rs 7.07

-2What is not working for the Company

NET SALES(9M)

At Rs 1,241.28 cr has Grown at -23.92%

Loading Valuation Snapshot...

Here's what is working for Fusion Finance

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 31.29 cr has Grown at 138.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -81.37 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 114.19 cr has Grown at 272.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -66.23 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 165.59 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 39.05% and Grown

each quarter in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 31.29 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 114.19 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 7.07

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Lowest at 2.27 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Fusion Finance

Net Sales - Nine Monthly

At Rs 1,241.28 cr has Grown at -23.92%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)