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Fusion Finance Shares Rise 4% After CEO Meeting; EMKAYS Raises Target Price

  //business-finance.news-articles.net/content/202 .. fter-ceo-meeting-emkays-raises-target-price.html
  Published in Business and Finance on Wednesday, November 26th 2025 at 2:26 GMT by Business Today
      Locale: Karnataka, INDIA

Fusion Finance Shares Surge 4% After Meeting with MD‑CEO Sanjay Garyali; EMKAYS Sets Bullish Target

Fusion Finance Ltd., a niche player in India’s fintech‑loan ecosystem, experienced a 4 % uptick in its trading price on the Indian stock exchanges after an on‑floor meeting with its Managing Director and Chief Executive Officer, Sanjay Garyali. The rally came on the back of positive disclosures from the company’s executive and a newly‑issued target price from research house EMKAYS, which upgraded its valuation of the firm on the day.

1. Why the Meeting Mattered

Fusion Finance has long been positioned as a specialist lender, focusing on high‑quality credit lines for small‑to‑medium enterprises (SMEs) and retail borrowers. The company’s business model relies on a sophisticated underwriting engine that blends traditional credit data with alternative data sources—social media sentiment, utility bill payments, and even AI‑driven behavioural analytics.

During the meeting, Garyali emphasized several strategic priorities:

Garyali’s candid discussion about the upcoming technology rollout and capital‑raising plans reassured investors that the company is not only managing risk but also poised for next‑phase expansion. The fact that the meeting took place in front of the trading floor added an element of transparency that is often missing in corporate communications.

2. EMKAYS Sets a Bullish Target

Shortly after the meeting, the research division of EMKAYS released a note recommending an upgraded target price for Fusion Finance shares. The firm’s analysts argued that the company’s strong underwriting framework, coupled with a robust pipeline of new product offerings, could drive both top‑line growth and margin expansion.

Key takeaways from the EMKAYS note include:

• Target Price: ₹120 per share (up from the current market price of ₹112), implying a 7.1 % upside potential.
• Rationale:
  • Improved Net Interest Margin: Projected net interest margin to rise from 12.5 % to 14.0 % over the next 12 months due to higher loan volumes and better pricing.
  • Operational Efficiency: Anticipated reduction in operating expenses by 5 % thanks to automation of underwriting and post‑disbursement servicing.
  • Capital Adequacy: Planned debt issuance will lift the company’s CET1 ratio to 13.5 %, giving it buffer room to deploy capital aggressively.

The research note also noted that Fusion Finance’s loan book, which grew by 18 % YoY to ₹45 billion as of the end of FY2024, was expected to maintain a healthy growth trajectory given the current economic backdrop.

3. Market Reaction & Analyst Sentiment

Following the announcement, the stock traded up by 4 % during the first 30 minutes of the trading day, reaching a peak of ₹113.20 before consolidating. The volume of shares traded spiked to 3.2 million, indicating a robust investor response.

In commentary, two market analysts weighed in:

• Rajesh Gupta, Senior Analyst at InvestEdge: “The meeting gave the market a clearer view of Fusion Finance’s growth blueprint. The new AI‑credit module is a game‑changer, especially in the context of India’s fragmented SME credit landscape.”
• Anita Deshmukh, Portfolio Manager at GreenField Capital: “EMKAYS’ upward revision signals confidence in the company’s risk‑adjusted returns. For long‑term investors, Fusion Finance could represent a ‘mid‑cap play’ in the growing fintech space.”

4. Additional Context & Links

The original article linked to several pieces of supplementary material that enriched the narrative:

1. Fusion Finance FY24 Annual Report – Provided a deep dive into the company’s financials, including loan loss provisions, asset‑quality ratios, and a breakdown of the loan portfolio by sector.
2. RBI’s New Guidelines on Fintech Lending – A regulatory update outlining stricter KYC and data‑privacy norms that Fusion Finance is already complying with.
3. EMKAYS Research Note (PDF) – The full research memorandum that details the assumptions behind the ₹120 target price and includes a comparison with peer analysts’ forecasts.

These links offered readers a comprehensive view of the company’s operational health, regulatory environment, and valuation landscape.

5. Implications for Investors

Fusion Finance’s 4 % rally, underpinned by a constructive dialogue with leadership and a favorable research endorsement, positions the stock as a potential buying opportunity for investors looking to tap into India’s expanding fintech‑loan market. Key takeaways for stakeholders include:

• Growth Prospects: The planned expansion into mid‑tier cities and the deployment of an AI‑driven credit engine should accelerate loan origination and deepen market penetration.
• Risk Management: Robust underwriting, proactive loan loss provisioning, and adherence to new regulatory norms suggest a well‑managed risk profile.
• Capital Efficiency: The forthcoming debt tranche will not only strengthen the balance sheet but also provide the fiscal flexibility needed to pursue aggressive growth strategies.

6. Conclusion

In a market environment where fintech firms often oscillate between hype and caution, Fusion Finance’s recent performance exemplifies a data‑driven, transparent approach to growth. The 4 % rise in share price following a candid meeting with MD‑CEO Sanjay Garyali, coupled with EMKAYS’ bullish target, signals that the market is taking notice of the company’s strategic roadmap and operational resilience. For investors seeking exposure to a mid‑cap fintech player with a clear vision and a robust execution plan, Fusion Finance may now be a stock worth watching closely.