Buy / Sell Fusion Micro share
The newly listed Fusion Micro Finance stock has been on a tear. It has seen a 21 percent upmove ever since November 15 when it debuted on the bourses. The management also said during its earnings call that they are slowly moving towards secured loans and that they will not be aggressive in trying to gain market share from peers.
Speaking to CNBC-TV18, Devesh Sachdev, MD & CEO of Fusion Micro Finance said that the company is not talking about market share as they have a calibrated growth approach.
"The MSME business is very small. It's around 2.5 percent of our total overall portfolio. So, we are very calibrated, we want to grow that but we are very focused on microfinance as a core business and where we see a good potential,” he said.
The company is seeing a good demand uptick, and its disbursement in the first half of the fiscal was a healthy Rs 4,000 crore.
Sachdev believes that the current rules in the MFI sector will be good for the sector and aid growth further.
“The new regulations have been put in place where you need to do a credit assessment at the household level. I am very hopeful that this will further increase the sustainability of the clients and will make sure that the sector will grow at a more sustainable level,” he said.
Rating agency CRISIL has upgraded Fusion’s rating due to the increase in capital post the IPO. The rating was also revised higher due to the expected improvement in profitability.