Thinking to buy NMB Microfinance just for 150% right ? Checkout the 4th quarter report

The board meeting of NMB Microfinance had recently proposed 150% right share for the shareholders, so as to raise the capital for further expansion. But is the company worth investing in ? Checkout the company's performance as of 4th quarter.

The paid up capital of the company stands at Rs 14.08 crore whereas the company has a reserve of Rs 11.03 crore. The borrowings of the microfinance surged by 13.36% to Rs 1.68 arba from the previous year’s figure of Rs 1.48 arba. The microfinance extended loans of Rs 2.16 arba till the last quarter of the fiscal year 2074/75. 

In terms of Net profit, the company has earned Rs 3.41 crores recording a decline of 24.82% in the review period. 

 

Major Indicators : 

Earning per shares (EPS)                : Rs 24.23

Price to earning ratio (P/E Ratio)     : 66.89 times 

Networth per Share                          : Rs 178.34

Capital Adequacy Ratio (CAR)        : 11.41%

P/B Ratio                                          : 9.08 times

NPL                                                  : 2.59%

 

Positive Sides

• Decent increase in paid-up Capital, surged by 25%
• Significant growth in deposit, increase by 72.33%
• Decent Net worth per shares

 

Negative Sides

• Rising Interest Expense , growth of more than 100% recorded
• Rising cost of fund, surged to 9.73%
• Significant rise in NPL
• Low CAR