Is Grameen Laghubitta worth a buy at current Rs. 369 price?

May 5, 2019 | Investopaper

Grameen Laghubitta Bittiya Sanstha Limited has published the third quarter report that shows the increase in net profit by 14 percent. The microfinance made a profit of Rs. 16.44 until the third quarter which was Rs. 14.38 crores in the corresponding quarter of the previous year.

During this period, Grameen Laghubitta made loans and advances of Rs. 9.68 Arba, a rise of 13.62 percent from the previous year. The paid-up capital until the third quarter is Rs. 65.50 crores with reserves and surplus of Rs. 56.03 crores. However, since the book for 50 percent right share is already closed, the new capital will be Rs. 98.25 crores. So, we have included Rs. 98.25 crores as the paid-up capital of the company in order to calculate actual EPS, Networth Per Share and P/E ratio.

With Rs. 98.25 crores in the capital, the company has Earnings per share (EPS) of Rs. 22.31 and net-worth per share of Rs. 157. At the price of Rs. 369 per share, the P/E ratio is 16.54.

Grameen Laghubitta: Financial Highlights of 3rd Quarter, 2075/76

                Headings 3rd Qtr, F.Y. 2075/76 3rd Qtr, F.Y. 2074/75 % Change
Paid up capital (Rs.’ crores’) 98.25** 65.50 50.00
Reserve and Surplus (Rs.’ crores’) 56.03 28.41 97.22
Borrowings (Rs.’ Arba’) 4.76 4.82 -1.24
Deposits (Rs.’ Arba’) 3.09 2.6 18.85
Loans & Advances (Rs.’Arba’) 9.68 8.52 13.62
Net Interest Income (Rs.’ crores’) 66.53 59.89 11.09
Net Profit(Rs.’crores’) 16.44 14.38 14.33
Earnings Per Share, EPS(Rs.) 22.31** 29.27 -23.78
Non Performing Loans, NPL(%) 4.76 4.96 -4.03
Cost of Fund(%) 9.17 8.9 3.03
Networth Per Share, Rs. 157.03** 143.37 9.52
Market Price, Rs. [Baisakh 19, 2076] 369
P/E Ratio 16.54

Note: ** The paid-capital is different from the unaudited third-quarter report of Grameen Laghubitta. We have adjusted the 50 percent right share of Grameen Laghubitta due to its book close, for the fair calculation of EPS, and P/E ratio at the current market price.


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