In NEPSE, there are 50 listed microfinance companies, the number is highest amongst other sector.
Thus, in this analysis we look into various indicators of 50 listed microfinance companies based on the unaudited 3rd Quarter report of FY 2076/77.
The minimum required capital for wholesale level, national, regional and district level microfinance are 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 1.50 arba which is highest in the industry.
Reserves and Surplus:
Microfinance companies with highest reserves and surplus are Sana Kisan (SKBBL), Chhimek Laghubitta (CBBL) and RMDC Laghubitta (RMDC) with Rs 1.86 arba, 1.64 arba and 1.56 arba reserves respectively.
As of the third quarter report of FY 2076/77, the listed microfinance institutes with the highest net profit are:
- Chhimek Laghubitta Bittiya Sanstha Limited (CBBL) with a net profit of Rs 59.79 crores
- Nirdhan Utthan Bank Limited (NUBL) with a net profit of Rs 47.33 crores
- Sana Kisan Bikas Bank Limited (SKBBL) with a net profit of Rs 43.51 crores
Net worth per Share:
Sana Kisan Microfinance leads in terms of net worth with Rs 286.10 per share followed by FORWAD Microfinance and RMDC with net worth of Rs 278.10 and 273.70 respectively.
Earnings per Share:
Earnings per Share is one of the key indicators investor need to be updated about as it gives an idea about what the investor might get in return as dividend. Sana Kisan (SKBBL), Forward Laghubitta (FOWAD) and National Microfinance Bittiya Sanstha Limited (NMFBS) make to the top list with EPS of Rs 58.00,57.98 and 57.48 respectively.
Price to Earnings Ratio (PE):
Price to earnings ratio is one of the important indicators used by value investors to find out possible investment opportunities. The benchmark for PE ratio varies across sectors. As of 3rd Quarter 2076/77, companies with lowest PE ratio are Sana Kisan (SKBBL), Unnati Laghubitta (UMB) and Chhimek Laghubitta (CBBL) with PE ratio of 17.07, 17.37 and 17.97 respectively. These PE ratios were published in the quarterly reports.
In a nutshell