Top 10 Microfinance in NEPSE with highest Earning Per Share (EPS)

In this article, we will be discussing about top 10 microfinance companies in NEPSE with highest EPS. Before we move onto the actual discussion, we need to understand various terms used here like LTP, MCAP, EPS,P/E etc. Those terms are explained below.

1. LTP (Last Traded Price): This is the most recent price at which the company's stock was traded on the stock exchange.

2. MCAP (Market Capitalization): This is the total market value of a company's outstanding shares of stock. It is calculated by multiplying the current stock price (LTP) by the total number of outstanding shares. In this case, the values are in crore rupees.

3. EPS (Earnings Per Share): EPS is a measure of a company's profitability. It is calculated by dividing the company's net earnings by the number of outstanding shares. A higher EPS indicates higher profitability on a per-share basis.

4. P/E (Price-to-Earnings) Ratio: The P/E ratio is a valuation ratio that compares the current market price of a company's stock to its earnings per share (EPS). It is used to assess whether a stock is overvalued or undervalued. Lower the value better the performance of the company.

5. BVPS (Book Value Per Share): BVPS is the total shareholder equity of a company divided by the number of outstanding shares. It represents the net asset value of each share if the company were to be liquidated. It is used to assess the intrinsic value of a company's shares.

6. P/B (Price-to-Book) Ratio: The P/B ratio compares the current market price of a company's stock to its book value per share. It is another valuation ratio used to assess whether a stock is overvalued or undervalued. A higher P/B ratio may indicate that the stock is overvalued.

7. PEG (Price/Earnings to Growth) Ratio: The PEG ratio is a valuation ratio that takes into account a company's P/E ratio and its expected earnings growth rate. It is used to evaluate whether a stock is fairly valued relative to its growth prospects. A PEG ratio below 1 is often considered attractive.

8. ROE (Return on Equity): ROE is a financial ratio that measures a company's profitability relative to its shareholders' equity. It indicates how well a company is using its equity to generate profits.

9. ROA (Return on Assets): ROA is a financial ratio that measures a company's profitability relative to its total assets. It indicates how efficiently a company is using its assets to generate profits.

10. Graham: This might refer to the Graham Number, which is a valuation formula created by Benjamin Graham, a famous value investor. It helps identify potentially undervalued stocks. It is calculated as the square root of (22.5 * EPS * BVPS). If the stock price is significantly below the Graham Number, it may be considered undervalued.

11. MCAP Weightage: This represents the weightage of the company's market capitalization in a broader index or portfolio.

12. Graham Valuation: This likely indicates whether the stock is considered undervalued (a potential value investment) or overvalued based on the Graham Number. Stocks trading below their Graham Number may be considered undervalued.

Microfinance companies listed below are sorted on descending order of Earning Per Share(EPS).

1. Aatmanirbhar Laghubitta Bittiya Sanstha Limited (ANLB): ANLB, or [Company Name Here], is a microfinance company listed on the Nepal Stock Exchange. As of the last traded price (LTP), their stock is valued at 1998.0. The company's market capitalization (MCAP) stands at 124.68 Crores. ANLB has reported earnings per share (EPS) of 77.97, indicating a healthy level of profitability. However, the price-to-earnings (P/E) ratio of 25.65 suggests that investors are willing to pay a relatively high price for each unit of earnings. The book value per share (BVPS) is 441.01, and the price-to-book (P/B) ratio is 4.54, indicating that the stock's price is considerably higher than its book value. The return on equity (ROE) is 17.68%, and the return on assets (ROA) is 3.17%. According to the Graham valuation, the stock is considered overvalued with a value of 879.61. ANLB has a market capitalization weightage of 0.45 in the overall market.

• LTP: 1998.0
• MCAP: 124.68 Cr
• EPS: 77.97
• P/E: 25.65
• BVPS: 441.01
• P/B: 4.54
• PEG: Not provided
• ROE: 17.68%
• ROA: 3.17%
• Graham: 879.61
• MCAP Weightage: 0.45
• Graham Valuation: Overvalued

2. NESDO Sambridha Laghubitta Bittiya Sanstha Limited (NESDO): NESDO is another microfinance company listed on the Nepal Stock Exchange. Their LTP is 1800.0 with a market capitalization (MCAP) of 459 Crores. NESDO reports an EPS of 57.55, indicating solid earnings. However, the relatively high price-to-earnings (P/E) ratio of 31.28 suggests that the stock might be considered somewhat overvalued by investors. The book value per share (BVPS) is 385.64, with a corresponding P/B ratio of 4.67. NESDO also has a negative PEG ratio (-0.92), which might indicate concerns about future growth. The return on equity (ROE) is 14.92%, and the return on assets (ROA) is 3.05%. According to the Graham valuation, the stock is considered overvalued with a value of 706.64. NESDO has a market capitalization weightage of 1.66 in the overall market.

• LTP: 1800.0
• MCAP: 459 Cr
• EPS: 57.55
• P/E: 31.28
• BVPS: 385.64
• P/B: 4.67
• PEG: -0.92
• ROE: 14.92%
• ROA: 3.05%
• Graham: 706.64
• MCAP Weightage: 1.66
• Graham Valuation: Overvalued

3. Sparsha Laghubitta Bittiya Sanstha Limited ( SPARS ): SPARS is a microfinance company with an LTP of 972.0 and an MCAP of 108.89 Crores. They have reported an EPS of 41.85, which indicates solid profitability. The price-to-earnings (P/E) ratio of 23.23 suggests that investors are willing to pay a reasonable price for each unit of earnings. The book value per share (BVPS) is 142.34, and the price-to-book (P/B) ratio is relatively high at 6.83. SPARS has a positive PEG ratio of 0.36, indicating potential for growth. The return on equity (ROE) is a robust 29.40%, and the return on assets (ROA) is 3.45%. According to the Graham valuation, the stock is considered overvalued with a value of 366.1. SPARS has a market capitalization weightage of 0.39 in the overall market.

• LTP: 972.0
• MCAP: 108.89 Cr
• EPS: 41.85
• P/E: 23.23
• BVPS: 142.34
• P/B: 6.83
• PEG: 0.36
• ROE: 29.40%
• ROA: 3.45%
• Graham: 366.1
• MCAP Weightage: 0.39
• Graham Valuation: Overvalued

4. Samaj Laghubittya Bittiya Sanstha Limited (SAMAJ): SAMAJ is a microfinance company with an LTP of 74.0 and an MCAP of 1.48 Crores. While the EPS is 37.91, indicating decent profitability, the price-to-earnings (P/E) ratio is exceptionally low at 1.95, suggesting that investors are paying a relatively small price for each unit of earnings. The book value per share (BVPS) is 224.31, and the price-to-book (P/B) ratio is also low at 0.33. SAMAJ has not provided a PEG ratio. The return on equity (ROE) is 16.90%, and the return on assets (ROA) is 1.79%. According to the Graham valuation, the stock is considered undervalued with a value of 437.43. SAMAJ has a market capitalization weightage of 0.01 in the overall market.

• LTP: 74.0
• MCAP: 1.48 Cr
• EPS: 37.91
• P/E: 1.95
• BVPS: 224.31
• P/B: 0.33
• PEG: Not provided
• ROE: 16.90%
• ROA: 1.79%
• Graham: 437.43
• MCAP Weightage: 0.01
• Graham Valuation: Undervalued

5. Chhimek Laghubitta Bittiya Sanstha Limited (CBBL): CBBL is a microfinance company with an LTP of 945.0 and a significant MCAP of 2,679.45 Crores. Their reported EPS is 37.45, and the P/E ratio is 25.23, indicating that investors are willing to pay a moderate price for each unit of earnings. The book value per share (BVPS) is 238.27, and the price-to-book (P/B) ratio is 3.97. CBBL has a negative PEG ratio (-1.61), which might raise concerns about future growth. The return on equity (ROE) is 15.72%, and the return on assets (ROA) is 2.49%. According to the Graham valuation, the stock is considered overvalued with a value of 448.09. CBBL has a significant market capitalization weightage of 9.70 in the overall market.

• LTP: 945.0
• MCAP: 2,679.45 Cr
• EPS: 37.45
• P/E: 25.23
• BVPS: 238.27
• P/B: 3.97
• PEG: -1.61
• ROE: 15.72%
• ROA: 2.49%
• Graham: 448.09
• MCAP Weightage: 9.70
• Graham Valuation: Overvalued

6. Mahila Lagubitta Bittiya Sanstha Limited (MLBSL): MLBSL is a microfinance company with an LTP of 1740.0 and an MCAP of 377.47 Crores. They have reported an EPS of 34.71, indicating good profitability. The price-to-earnings (P/E) ratio is relatively high at 49.98, suggesting that investors are willing to pay a substantial price for each unit of earnings. The book value per share (BVPS) is 212.63, and the price-to-book (P/B) ratio is 8.16, indicating that the stock's price is significantly higher than its book value. MLBSL has a negative PEG ratio (-0.76), which might indicate concerns about future growth. The return on equity (ROE) is 16.33%, and the return on assets (ROA) is 1.69%. According to the Graham valuation, the stock is considered overvalued with a value of 407.51. MLBSL has a market capitalization weightage of 1.37 in the overall market.

• LTP: 1740.0
• MCAP: 377.47 Cr
• EPS: 34.71
• P/E: 49.98
• BVPS: 212.63
• P/B: 8.16
• PEG: -0.76
• ROE: 16.33%
• ROA: 1.69%
• Graham: 407.51
• MCAP Weightage: 1.37
• Graham Valuation: Overvalued

7. Jeevan Bikas Laghubitta Bittya Sanstha Ltd (JBLB): JBLB is a microfinance company with an LTP of 1387.0 and an MCAP of 1,631.21 Crores. They have reported an EPS of 34.28, and the price-to-earnings (P/E) ratio is 40.25, indicating that investors are willing to pay a relatively high price for each unit of earnings. The book value per share (BVPS) is 263.07, and the price-to-book (P/B) ratio is 5.25. JBLB also has a negative PEG ratio (-0.74). The return on equity (ROE) is 13.03%, and the return on assets (ROA) is 1.65%. According to the Graham valuation, the stock is considered overvalued with a value of 450.48. JBLB has a market capitalization weightage of 5.90 in the overall market.

• LTP: 1387.0
• MCAP: 1,631.21 Cr
• EPS: 34.28
• P/E: 40.25
• BVPS: 263.07
• P/B: 5.25
• PEG: -0.74
• ROE: 13.03%
• ROA: 1.65%
• Graham: 450.48
• MCAP Weightage: 5.90
• Graham Valuation: Overvalued

8. Swabalamban Laghubitta Bittiya Sanstha Limited (SWBBL): SWBBL is a microfinance company with an LTP of 759.9 and an MCAP of 974.32 Crores. They have reported an EPS of 26.31, and the price-to-earnings (P/E) ratio is 28.70, indicating that investors are willing to pay a moderate price for each unit of earnings. The book value per share (BVPS) is 252.46, and the price-to-book (P/B) ratio is 2.99. SWBBL has a negative PEG ratio (-0.5), which might raise concerns about future growth. The return on equity (ROE) is 10.42%, and the return on assets (ROA) is 1.71%. According to the Graham valuation, the stock is considered overvalued with a value of 386.56. SWBBL has a market capitalization weightage of 3.53 in the overall market.

• LTP: 759.9
• MCAP: 974.32 Cr
• EPS: 26.31
• P/E: 28.70
• BVPS: 252.46
• P/B: 2.99
• PEG: -0.5
• ROE: 10.42%
• ROA: 1.71%
• Graham: 386.56
• MCAP Weightage: 3.53
• Graham Valuation: Overvalued

9. Sana Kisan Bikas Laghubitta Bittiya Sanstha Limited (SKBBL): SKBBL is a microfinance company with an LTP of 888.0 and a significant MCAP of 2,961.81 Crores. They have reported an EPS of 24.44, and the price-to-earnings (P/E) ratio is 36.38, indicating that investors are willing to pay a relatively high price for each unit of earnings. The book value per share (BVPS) is 258.16, and the price-to-book (P/B) ratio is 3.44. SKBBL has a negative PEG ratio (-0.79), which might raise concerns about future growth. The return on equity (ROE) is 9.47%, and the return on assets (ROA) is 1.67%. According to the Graham valuation, the stock is considered overvalued with a value of 376.76. SKBBL has a market capitalization weightage of 10.72 in the overall market.

• LTP: 888.0
• MCAP: 2,961.81 Cr
• EPS: 24.44
• P/E: 36.38
• BVPS: 258.16
• P/B: 3.44
• PEG: -0.79
• ROE: 9.47%
• ROA: 1.67%
• Graham: 376.76
• MCAP Weightage: 10.72
• Graham Valuation: Overvalued

10. Deprosc Laghubitta Bittiya Sanstha Limited (DDBL): DDBL is a microfinance company with an LTP of 717.0 and an MCAP of 1,116.78 Crores. They have reported an EPS of 23.98, and the price-to-earnings (P/E) ratio is 30.03, indicating that investors are willing to pay a moderate price for each unit of earnings. The book value per share (BVPS) is 217.87, and the price-to-book (P/B) ratio is 3.30. DDBL has a negative PEG ratio (-0.58), which might raise concerns about future growth. The return on equity (ROE) is 11.01%, and the return on assets (ROA) is 1.70%. According to the Graham valuation, the stock is considered overvalued with a value of 342.85. DDBL has a market capitalization weightage of 4.04 in the overall market.

• LTP: 717.0
• MCAP: 1,116.78 Cr
• EPS: 23.98
• P/E: 30.03
• BVPS: 217.87
• P/B: 3.30
• PEG: -0.58
• ROE: 11.01%
• ROA: 1.70%
• Graham: 342.85
• MCAP Weightage: 4.04
• Graham Valuation: Overvalued

The above shown values are as of fiscal year 2079/80 Quarter 4