Microfinance companies are class “D” financial institutions licensed by Nepal Rastra Bank. Nepal Rastra Bank regulates all the banks and financial institutes (BFIs) in Nepal. In recent days, investors are inclined towards microfinance as microfinance companies are performing well in the market. The fact is the annualized EPS of 30+ microfinance exceeds the EPS of commercial banks. The majority of investors who had invested in hydro, insurance, and banks sectors are shifted to microfinance, as a result, the price of stocks is skyrocketed.
Which Microfinance is Best to Invest in Nepal?
There is no exact answer to this question. The stock market is a very sensitive sector because no one can guarantee which company’s price will rise to which level. But, if we see the fundamental status of a particular company we can say that such a company is at least safe to invest in. The fundamental status of the company can be known by analyzing its financial ratios of that company.
In terms of Earning Per Share (EPS), Mahila Lghubitta Bittiya Sasntha Limited is the best stock to pick. The EPS of (MLBSL) is 101.76 as of 4th Q report of FY 2078/79.
Here is the list of microfinance in Nepal ranked in terms of Earning Per Share (EPS) as per the 4th Q report 2077/78.
| Company | Symbol | EPS (TTM) |
|---|---|---|
| Mahila Laghubitta | MLBSL | 101.76 |
| Forward Community Laghubitta | FOWAD | 100.11 |
| Nesdo Samridda Laghubitta | NESDO | 87.04 |
| Jivan Bikas Laghubitta | JBLB | 75.6 |
| National Microfinance | NMFBS | 68.44 |
| Upakar Laghubitta | ULBSL | 68.09 |
| Swabalamban Laghubitta | SWBBL | 62.43 |
| Jalpa Samudayik Laghu Bitta | JALPA | 61.66 |
| Deprosc Laghubitta | DDBL | 49.65 |
| Nirdhan Utthan Laghubitta | NUBL | 46.85 |
| Global IME Laghubitta | GILB | 45.34 |
| Sana Kisan Bikash Bank | SKBBL | 45.28 |
| Chhimek Laghubitta | CBBL | 44.42 |
| Swabhimaan Laghubitta | SMFBS | 43.28 |
| Laxmi Laghubitta | LLBS | 41.85 |
| Kalika Microfinance | KMCDB | 40.97 |
| Mirmire Microfinance | MMFDB | 39.86 |
| Sworajgar Laghubitta | SLBBL | 39.41 |
| Nerude Laghubitta | NLBBL | 38.83 |
| Mahuli Samudayik Laghubitta | MSLB | 38.48 |
| Asha Laghubitta | ALBSL | 37.01 |
| Sabaiko Laghubitta | SABSL | 36.95 |
| Infinity Laghubitta | ILBS | 36.24 |
| Sadhana Laghubitta | SDLBSL | 36.15 |
| Mero Micofinance | MERO | 34.35 |
| Mithila Laghubitta | MLBBL | 33.83 |
| NIC Asia Laghubitta | NICLBSL | 33.67 |
| Janauthhan Samudayik Laghubitta | JSLBB | 33.52 |
| Adarsha Laghubitta | ADLB | 33.3 |
| Vijaya Laghubitta | VLBS | 32.72 |
| Summit Laghubitta | SMFDB | 29.42 |
| RMDC Laghubitta | RMDC | 28.6 |
| First Microfinance Development | FMBDL | 27.88 |
| Kisan Laghubitta | KLBSL | 26.29 |
| Naya Sarathi Laghubitta | NSLB | 26.07 |
| Rastra Utthan Laghubitta | RULB | 25.58 |
| Civil Laghubitta | CLBSL | 25.56 |
| Support Microfinance | SMB | 24.49 |
| Samata Gharelu Laghubitta | SMATA | 23.26 |
| Manushi Laghubitta | MLBS | 21.98 |
| Grameen Bikas Laghubitta | GBLBS | 20.17 |
| NMB Microfinance | NMBMF | 19.51 |
| Arambha Chautari Laghubitta | AVLBSL | 19.16 |
| Samudayik Laghubitta | SLBSL | 18.1 |
| Suryodaya Womi Laghubitta | SWMF | 17.63 |
| Unnati Sahakarya Laghubitta | USLB | 16.97 |
| RSDC Laghubitta | RSDC | 16.79 |
| Manakamana Smart Laghubitta | MKLB | 13.53 |
| Gurans Laghubitta | GLBSL | 13.07 |
| Wean Nepal Laghubitta | WNLB | 13.03 |
| Ganapati Microfinance | GMFBS | 12.28 |
Note – The above EPS report is based on the unaudited report of the 4th quarter (FY 2078/79). This data may change after the final audit. The list contains only those companies which are listed in NEPSE.
Disclaimer – Investment is subject to market risk. Investors are advised to consider other crucial factors while making investment decisions.