February 21, 2021 | Investopaper
The microfinance companies have provided investors with healthy returns. This is why investors prefer to invest in the shares of microfinance. The likes of Chhimek and Nirdhan Utthan Laghubitta have consistently given above-average returns (including lucrative bonus shares) to the investors. Microfinance stocks are priced higher than stocks of other banking sectors because they have a high return on capital.
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Based on the unaudited second quarterly report of the fiscal year 2077/78, here we have ranked the ten top microfinance companies on the basis of Earnings Per Share (EPS). EPS is calculated by dividing the net profit with the total number of shares of the company. We have annualized the Earnings Per Share for the ease in comparison.
Note: We have included only those microfinance listed on Nepal Stock Exchange (NEPSE).
National Microfinance Laghubitta (NMFBS) remains at the top with an impressive Rs 101.62 as the EPS. Likewise, Forward Microfinance Laghubitta (FOWAD) and Swadeshi Laghubitta (SDESI) are at the second and third position with Rs 89.93 and Rs 87.12 EPS respectively.
The table below shows the top ten microfinance companies with the highest Earnings Per Share (EPS).
10 Microfinance With Highest Earnings Per Share (EPS) -Based On Q2 Report, FY 2077/78
|Rank||Microfinance||Earnings Per Share, EPS (In ‘Rs’)|
|1||National Microfinance Laghubitta||101.62|
|2||Forward Microfinance Laghubitta||89.93|
|4||Global IME Laghubitta||73.12|
|5||Janautthan Samudayik Laghubitta||69.3|
|8||Unnati Sahakarya Laghubitta||63.18|
Source: Second Quarterly Report, FY 2077/78
Note: Since, the above figures of EPS are based on the unaudited second quarterly report of the fiscal year 2077/78, it may change at the end of the fiscal year after the final audit.
Microfinance With Highest Earnings Per Share (EPS) In FY 2076/77
The table below presents the microfinance with the highest Earnings Per Share from the previous fiscal year 2076/77.
|Rank||Microfinance Companies||Stock Symbol||Type||Earnings Per Share (EPS)|
|1||Sana Kisan Bikas Laghubitta||SKBBL||Wholesale||54.81|
|2||Forward Community Laghubitta||FOWAD||Retail||50.18|
|8||Global IME Laghubitta||GILB||Retail||30.03|
|10||Janautthan Samudayik Laghubitta||JSLBB||Retail||28.27|
Note: The above figures are based on the unaudited fourth quarter report of the fiscal year 2076/77. After the audit, the number along with ranking may vary.
Which microfinance stocks would you like to buy? Analyze the table above and make the decision yourself. Feel free to share your views in the comment section.
Disclaimer: Investment is subject to market risks. Investors are advised to take other things in consideration along with this while making the actual investment decision.