Fusion Micro Finance vs Arohan Financial Services: Share Price, PE, ROE Compared

Fusion Micro Finance vs Arohan Financial Services is a comparison microfinance investors look up when evaluating two listed Indian microfinance institutions (MFIs). Fusion Micro Finance, a Delhi-based company (listed 2022), is a large microfinance NBFC providing small group loans to low-income women borrowers across North, East and South India. Arohan Financial Services, a Kolkata-based company, is a microfinance NBFC focused on East and North-East India's underserved women borrowers. The Fusion Micro Finance versus Arohan comparison covers two MFIs in a sector-wide stress period – Fusion's PE of 240x reflects near-zero earnings.

This Fusion Micro Finance vs Arohan Financial Services article covers reach and market position, key products, latest declared results and stock valuation. All data is sourced from Groww and public company filings.

Reach and Market Position

In this Fusion Micro Finance vs Arohan Financial Services comparison, Fusion Micro Finance serves women borrowers through its Joint Liability Group (JLG) loan model across UP, Bihar, Rajasthan, Odisha and other states. Market capitalisation is Rs 3,348 Cr.

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Arohan Financial Services serves women borrowers in West Bengal, Odisha, Bihar, Assam and North-East India through JLG microfinance loans. Market capitalisation is approximately Rs 1,500-2,000 Cr.

Key Products and Business Mix

For the Fusion Micro Finance vs Arohan Financial Services product breakdown, Fusion Micro Finance: Fusion earns from JLG microfinance loan interest. EPS is Rs 0.86 (near-zero!). PE is 240.81x – distorted by minimal earnings. ROE is 0.56 percent, D/E 2.27. Fusion's near-zero earnings reflect MFI sector-wide stress.

Arohan Financial Services: Arohan earns from JLG microfinance loan interest. Data is approximate – investors should verify current financials from exchange filings. MFI sector is under significant stress.

Latest Results and Financial Data

On the Fusion Micro Finance vs Arohan Financial Services results front: Fusion Micro Finance has a market cap of Rs 3,348 Cr and near-zero earnings (PE 240x, ROE 0.56%). The microfinance sector has faced significant stress due to over-indebtedness of borrowers and collection challenges.

Arohan Financial Services has a market cap of approximately Rs 1,500-2,000 Cr. Arohan focuses on East India's microfinance market. Both companies are impacted by the sector-wide MFI stress.

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Stock Performance and Valuation

Investors tracking the Fusion Micro Finance vs Arohan Financial Services comparison should verify current prices on NSE or BSE before trading. The Fusion Micro Finance vs Arohan Financial Services stock data below reflects the latest available figures from Groww and public company filings.

Fusion Micro Finance versus Arohan: Fusion (PE 240x, near-zero earnings, Rs 3,348 Cr) vs Arohan (approx Rs 1,500-2,000 Cr, sector stress). Both are in an MFI stress period – investors must review current financial health carefully.

Fusion Micro Finance vs Arohan Financial Services: Quick Comparison Table

The comparison table below summarises the key metrics side by side.

Parameter	Fusion Micro Finance	Arohan Financial Services
Sector	Microfinance JLG loans: women borrowers in North + East India (private NBFC)	Microfinance JLG loans: women borrowers in East + North-East India (private NBFC)
Market Cap	Rs 3,348 Cr	Approx Rs 1,500-2,000 Cr
P/E Ratio	240.81x (near-zero earnings)	Approx (verify from filings)
ROE	0.56% (near-zero)	Approx (verify from filings – sector stress)
Geography	North + East India (UP, Bihar, Rajasthan, Odisha)	East + North-East India (WB, Odisha, Bihar, Assam)
Loan Type	Joint Liability Group (JLG) microfinance	Joint Liability Group (JLG) microfinance
Status	Near-zero earnings (sector stress)	Under stress (verify from filings)

Conclusion

The Fusion Micro Finance vs Arohan Financial Services comparison above covers reach, products, results and valuation. Fusion Micro Finance versus Arohan Financial Services covers two microfinance NBFCs in a sector-wide stress period. The MFI sector faces over-indebtedness among borrowers and collection challenges across India. Fusion's near-zero earnings and Arohan's sector exposure both require careful monitoring. The Fusion and Arohan comparison reflects MFI sector headwinds. Investors must verify current financial status from exchange filings. Consult a SEBI-registered advisor before investing in stressed sectors.

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Frequently Asked Questions

What is microfinance?

Ans. Microfinance involves providing small collateral-free loans (Rs 10,000-Rs 1,00,000) to low-income women for income-generating activities (small business, livestock, trade). Loans are given to groups of 5-20 women who collectively guarantee repayment.

What is a JLG loan?

Ans. JLG (Joint Liability Group) loans are given to a group of women who guarantee each other's loans. If one member defaults, the group is responsible – this peer pressure mechanism improves repayment rates.

Why is Fusion Micro Finance PE so high?

Ans. Fusion's PE of 240x reflects near-zero earnings (EPS only Rs 0.86) from the MFI sector-wide stress – not a high valuation in the traditional sense, but a distortion caused by minimal profit.

What is MFI sector stress?

Ans. The MFI sector faces challenges when borrowers take too many loans from multiple MFIs (over-indebtedness), leading to repayment stress and higher NPAs (non-performing assets). This reduced Fusion's earnings.

Which is larger, Fusion or Arohan?

Ans. Fusion Micro Finance at Rs 3,348 Cr is approximately 1.7-2.2 times larger than Arohan at approximately Rs 1,500-2,000 Cr.

Are Fusion and Arohan in Nifty 50?

Ans. Neither is in Nifty 50.

Should I invest in stressed MFI companies?

Ans. Stressed MFI companies carry high risk. Investors should carefully review NPA levels, collection efficiency and provisioning from the latest exchange filings and consult a SEBI-registered advisor.