Update of micro finance companies' performance in the fourth quarter! Chhimek Laghubitta maintains the lead in terms of net profit

Sun, Aug 23, 2020 8:06 AM on Exclusive, Company Analysis,

In NEPSE, there are 50 listed Microfinance Companies (including 4 wholesalers), the number is highest amongst all sectors.

So, in this analysis, we look into various indicators of 50 listed microfinance companies based on the unaudited 4th quarter report of FY 2076/2077.

Net Profit:

As of fourth-quarter report of FY 2076/2077, the listed microfinance institutes with the highest net profit are:

  1. Chhimek Laghubitta Bittiya Sanstha Limited (CBBL) with a net profit of Rs. 64.92 crores
  2. Sana Kisan Laghubitta Bittiya Sanstha Limited (SKBBL) with a net profit of Rs. 54.82 crores
  3. Swabalamban Laghubitta Bittiya Sanstha Limited (SWBBL) with a net profit of Rs. 35.61 crores.

Paid-Up Capital:

As per the regulatory requirement of Paid-Up capital for wholesale level, National, Regional, and district level microfinance is Rs. 600 million, Rs. 100 million, Rs. 60 million and Rs. 10 million respectively. Both Chhimek Laghubitta (CBBL) and Nirdhan Utthan Laghubitta (NUBL) has a paid-up capital worth Rs. 1.5 Arba which is highest in the industry.

 

Reserve and Surplus:

Microfinance companies with the highest reserve and surplus are Sana Kisan (SKBBL), Nirdhan Laghubitta (NUBL), RMDC Laghubitta (RMDC), and with Rs. 1.97 Arba, Rs. 1.85 Arba and Rs. 1.699 Arba respectively.

 

Net Worth per share

Sana Kisan Laghubitta Leads in terms of Net worth with Rs. 297.37 per share followed by RMDC Laghubitta and FORWARD Laghubitta with Rs. 289.03 per share and Rs. 284.7 per share respectively.

Earnings per share:

Earnings per share are one of the key indicator’s investors need to be updated about as it gives an idea about what the company is earning for each share. Sana Kisan (SKBBL), Forward Laghubitta (FOWAD), and Swabalamban Lahubitta (SWBBL) make the top list with EPS of Rs. 54.8, Rs. 50.18 and Rs. 44.95 respectively.

 

Price to Earnings Ratio (PE):

Price to earnings ratio is one of the important indicators used by almost every investor to find out the possible investment opportunities. The benchmark for PE ratio varies across sectors. As of 4th Quarter 2076/2077, companies with the lowest PE ratio are RMDC Laghubitta (RMDC), Aadhikhola Laghubitta (AKBSL), and Sana Kisan Laghubitta (SKBBL) with 22.11 times, 22.12 times and 23.74 times respectively.

In a nutshell