Comparative Performance: Nerude Laghubitta Vs Swarojgar Laghubitta
January 31, 2020 | Investopaper
Nerude Laghubitta and Swarojgar Laghubitta are two retail national level microfinance companies in Nepal. Both the microfinance have published the second quarter report of the fiscal year 2076/77. With decent growth performance until the second quarter, Nerude and Swarojgar Laghubitta are trying to reach the capital requirement of Rs. 40 crores.
Here, we will try to make a financial comparison of these two microfinance companies.
Nerude Laghubitta leads in terms of capital and total reserve. It has Rs. 39.76 crores and Rs. 46.35 crores in capital and reserve respectively. On the other hand, Swarojgar Laghubitta has Rs. 34.16 crores in capital and Rs. 10 crores in reserve.
Similarly, Nerude tops Swarojgar in total loans with more than Rs. 200 crores. Nerude has floated Rs. 531.77 crores in loans until the second quarter. Swarojgar, on the other hand, has a loan portfolio of Rs. 330.04.
Again, Nerude surpasses Swarojgar in net interest income and net profit. Nerude’s net interest income stood at Rs. 22.04 crores in the first six months which has translated into Rs. 6.05 crores net profit.
However, Swarojgar Laghubitta has lower NPL and cost of funds with 1.32 percent and 10.22 percent respectively.
Similarly, Swarojgar has a higher EPS of Rs. 32.64 while Nerude has a greater per-share net worth of Rs. 216.55.
Which microfinance among the two do you prefer? Feel free to share your views in the comment section.
The financial comparison is also summarized in the table below:
Comparative Performance: Nerude Laghubitta Vs Swarojgar Laghubitta
| HEADINGS | Nerude Laghubitta | Swarojgar Laghubitta |
| PAID-UP CAPITAL (Rs. In crores) | 39.76 | 34.16 |
| RESERVE (Rs. In crores) | 46.35 | 10 |
| BORROWINGS (Rs. In crores) | 247.71 | 155.95 |
| DEPOSITS (Rs. In crores) | 214.74 | 155.06 |
| LOANS (Rs. In crores) | 531.77 | 330.04 |
| NET INTEREST INCOME (Rs. In crores) | 22.04 | 13.44 |
| PROFIT (Rs. In crores) | 6.05 | 5.58 |
| NON PERFORMING LOANS, NPL (%) | 2.10 | 1.32 |
| COST OF FUNDS(%) | 10.25 | 10.22 |
| EARNINGS PER SHARE, EPS (Rs.) | 30.43 | 32.64 |
| NETWORTH PER SHARE (Rs.) | 216.55 | 129.28 |
| MARKET PRICE PER SHARE (Rs.) [Poush end, 2076] | 623 | 700 |
| P/E RATIO | 20.47 | 21.45 |
Note:
The above figures are based on the unaudited second-quarter report published by the respective microfinance. Investors are advised to take other things into consideration along with this report while making investment decisions. The numbers may vary after the final audit.
