Performance of 8 Newly Listed Microfinance: Are they Overpriced?

Microfinance stocks are performing well in the stock market in recent times. Especially, the shares of the newly listed microfinance have surged in the past 2-3 weeks period. 8 microfinance companies, which have recently issued IPOs (within last 1 year period), have published the fourth-quarter report. We have tried to rank the performance of the 8 microfinance. If you have invested in the IPOs of these microfinance companies, then know how your company performed.

Note:

—The ranking is based on the unaudited report of fiscal year 2075/76. The audited report may vary.

—8 microfinance (that issued IPO within last 1 year ) that published the report until now are included.

—The market price of a share and p/e ratio is based on Shrawan 23, 2076.

RANK ON THE BASIS OF PAID-UP CAPITAL

Asha and Infinity Laghubitta have the highest paid-up capital with Rs. 20.74 crores. Gurans Laghubitta has a capital of Rs. 7.75 crores. The ranking on the basis of paid-up capital is shown in the table below:

RANK MICROFINANCE PAID-UP CAPITAL (Rs. In crores)  RESERVE (Rs. In crores)
1 Asha 20.74 3.90
2 Infinity 20.74 4.26
3 Chautari 18.6 4.32
4 Janasewi 14.43 1.89
5 Ganapati 10.35 1.71
6 Samudayik 10 5.54
7 Sparsha 8.29 1.58
8 Gurans 7.75 1.77

RANK ON THE BASIS OF LOANS

Asha Laghubitta has floated a loan of Rs. 189.26 crores followed by 156.37 crores of Chautari Laghubitta. See the borrowing, deposits, and loans in the table below:

RANK MICROFINANCE BORROWINGS (Rs. In crores) DEPOSITS (Rs. In crores) LOANS  (Rs. In crores)
1 Asha 119.83 49.86 189.26
2 Chautari 89.99 47.28 156.37
3 Infinity 79.69 51.29 146.14
4 Samudayik 44.68 35.17 91.21
5 Sparsha 68.59 16.67 90.38
6 Ganapati 58.99 23.72 87.75
7 Gurans 51.88 10.62 68.48
8 Janasewi 31.98 19.63 66.11

RANK ON THE BASIS OF PROFIT

Asha, Infinity and Ganapati Laghubitta have earned above Rs. 3 crores. Asha Laghubitta has earned the highest profit of Rs. 3.92 crores. The table below shows the ranking of the microfinance on the basis of profit along with the net interest income.

RANK MICROFINANCE NET INTEREST INCOME (Rs. In crores) PROFIT (Rs. In crores)
1 Asha 11.51 3.92
2 Infinity 9.24 3.75
3 Ganapati 6.09 3.05
4 Chautari 9.56 2.82
5 Samudayik 7.53 2.44
6 Sparsha 4.42 1.56
7 Gurans 4.06 1.49
8 Janasewi 4.88 1.46

RANK ON THE BASIS OF NON PERFORMING LOANS

Sparsha Laghubitta has the lowest NPL of 0.49 percent. On the other hand, Gurans Laghubitta has 2.70 percent NPL. The ranking on the basis of NPL along with the cost of fund is shown in the table below:

RANK MICROFINANCE NON PERFORMING LOANS, NPL (%) COST OF FUND (%)
1 Sparsha 0.49 11.68
2 Chautari 0.51 9.5
3 Ganapati 0.69 10.39
4 Infinity 0.77 11.58
5 Asha 1.49 11.05
6 Samudayik 1.65 8.98
7 Janasewi 1.87 10.29
8 Gurans 2.7 11.31

RANK ON THE BASIS OF EARNINGS PER SHARE

Ganapati Laghubitta has the highest EPS of Rs. 29.45. Samudayik Laghubitta is second with EPS of Rs. 24.44. The ranking of 8 microfinance on the basis of EPS is shown in the table below along with the net-worth per share.

RANK MICROFINANCE EARNINGS PER SHARE, EPS (Rs.)  NETWORTH PER SHARE (Rs.)
1 Ganapati 29.45 116.57
2 Samudayik 24.44 155.44
3 Gurans 19.17 122.87
4 Asha 18.89 118.78
5 Sparsha 18.82 119.08
6 Infinity 18.09 120.56
7 Chautari 15.17 123.2
8 Janasewi 10.12 113.1

RANK ON THE BASIS OF P/E RATIO

Ganapati Laghubitta has the lowest P/E ratio of 19.63. Currently priced at Rs. 578, Ganapati Laghubitta is relatively underpriced based on its earnings as compared to the other 6 microfinance. Janasewi Laghubitta is not listed in Nepse. The ranking based on the p/e ratio is shown in the table below along with the current market price.

RANK MICROFINANCE MARKET PRICE PER SHARE (Rs.) [Shrawan 23] P/E RATIO 
1 Ganapati 578 19.63
2 Infinity 477 26.37
3 Gurans 541 28.22
4 Asha 478 25.30
5 Samudayik 634 25.94
6 Sparsha 613 32.57
7 Chautari 464 30.59
8 Janasewi

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