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 the financial ratios of that company.
In terms of Earning Per Share (EPS), Jeevan Bikash Laghubitta Bittiya Sanstha (JBLB) is the best company. According to the unaudited financial report of the 4th quarter (FY 2077/78), the EPS of JBLB stands at 113.34, which is higher than any other company. Check each of the EPS in the table below.
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 Name | Symbol | EPS | PE Ratio (Times) |
| Jeevan Bikash Laghubitta Bittiya Sanstha | JBLB | 113.34 | – |
| Mahila Laghubitta Bittiya Sanstha | MLBSL | 92.98 | 52.38 |
| Forward Microfinance Laghubitta Bittiya Sanstha Limited | FOWAD | 91.87 | 30.15 |
| National Microfinance Laghubitta Bittiya Sanstha Limited | NMFBS | 77.73 | 46.35 |
| Chhimek Laghubitta Bittiya Sanstha Limited | CBBL | 66.43 | 26.16 |
| Swabalamban Laghubitta Bittiya Sanstha Limited | SWBBL | 65.69 | 25.25 |
| Deprosc Laghubitta Bittiya Sanstha Limited | DDBL | 61.73 | 27.31 |
| Swabhimaan Laghubitta Bittiya Sanstha Limited | SMFBS | 60.73 | 41.3 |
| Laxmi Laghubitta Bittiya Sanstha Limited | LLBS | 60.36 | 37.94 |
| Sabaiko Laghubitta Bittiya Sanstha Limited | SABSL | 55.49 | 32.71 |
| Nirdhan Utthan Laghubitta Bittiya Sanstha Limited | NUBL | 54.23 | 29.5 |
| Unnati Sahakarya Laghubitta Bittiya Sanstha Limited | USLB | 53.92 | 41.62 |
| Global IME Laghubitta Bittiya Sanstha Limited | GILB | 52.73 | 53.38 |
| Support Laghubitta Bittiya Sanstha Limited | SMB | 50.3 | 48.91 |
| Sana Kisan Laghubitta Bittiya Sanstha Limited | SKBBL | 49.14 | 33.37 |
| Infinity Laghubitta Bittiya Sanstha Limited | ILBS | 48.37 | 38.55 |
| Asha Laghubitta Bittiya Sanstha Limited | ALBSL | 47.6 | 39.06 |
| Mithila Laghubitta Bittiya Sanstha Limited | MLBBL | 46.13 | 50.84 |
| Mirmire Laghubitta Bittiya Sanstha Limited | MMFDB | 46 | 40.22 |
| Nepal Agro Laghubitta Bittiya Sanstha Limited | NAGRO | 45.95 | 15.67 |
| Sadhana Laghubitta Bittiya Sanstha Limited | SDLBSL | 45.57 | 36.91 |
| Janautthan Samudayic Laghubitta Bittiya Sanstha Limited | JSLBB | 44.96 | 75.19 |
| Mero Microfinance Laghubitta Bittiya Sanstha Limited | MERO | 44.72 | 34.57 |
| Vijaya Laghubitta Bittiya Sanstha Limited | VLBS | 44.43 | 40.94 |
| Mahuli Samudayik Laghubitta Bittiya Sanstha Limited | MSLB | 43.78 | 49.79 |
| Suryodaya Laghubitta Bittiya Sanstha Limited | SLBS | 42.58 | 40.63 |
| Aarambha Chautari Laghubitta Bittiya Sanstha Limited | ACLBSL | 41.13 | 38.27 |
| Adhikhola Laghubitta Bittiya Sanstha Limited | AKBSL | 41.06 | 11.33 |
| Womi Laghubitta Bittiya Sanstha Limited | WOMI | 38.97 | 41.57 |
| NADEP Laghubitta Bittiya Sanstha Limited | NADEP | 38.75 | 26.81 |
| Samata Gharelu Laghubitta Bittiya Sanstha Limited | SMATA | 37.94 | 43.62 |
| Swarojgar Laghubitta Bittiya Sanstha Limited | SLBBL | 37.52 | 39.98 |
| Nerude Laghubitta Bittiya Sanstha Limited | NLBBL | 36.92 | 43.33 |
| NMB Laghubitta Bittiya Sanstha Limited | NMBMF | 36.83 | 38.8 |
| Grameen Bikas Laghubitta Bittiya Sanstha Limited | GBLBS | 36.6 | 33.47 |
| Ganapati Laghubitta Bittiya Sanstha Limited | GMFBS | 33.08 | 53.81 |
| NIC Asia Laghubitta Bittiya Sanstha Limited | NICLBSL | 32.46 | 47.59 |
| Summit Laghubitta Bittiya Sanstha Limited | SMFDB | 30.38 | 55.79 |
| Civil Laghubitta Bittiya Sanstha Limited | CLBSL | 27.04 | 62.87 |
| Gurans Laghubitta Bittiya Sanstha Limited | GLBSL | 26.46 | 71.82 |
| RMDC Laghubitta Bittiya Sanstha Limited | RMDC | 22.49 | 61.06 |
| Kalika Laghubitta Bittiya Sanstha Limited | KMCDB | 19.89 | 71.93 |
| First Microfinance Laghubitta Bittiya Sanstha Limited | FMDBL | 16.14 | 50.99 |
| Samudayik Laghubitta Bittiya Sanstha Limited | SLBSL | 13.13 | 115.59 |
| Nepal Seva Laghubitta Bittiya Sanstha Limited | NSEWA | 12.75 | 65.19 |
| RSDC Laghubitta Bittiya Sanstha Limited | RSDC | 12.44 | 69.68 |
| Ghodighoda Laghubitta Bittiya Sanstha Limited | GGBSL | -6.67 | – |
Source – Sharesansar.com
Note – The above EPS report is based on the unaudited report of the 4th quarter (FY 2077/78). 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.