4th Floor Trade Tower, Thapathali, Kathmandu

Contact No: 01-5111145

Newsletter Published on 17th July 2020

Index Value

NEPSE 1,394.77

SENSITIVE 295.06

FLOAT 98.02

SEN. FLOAT 97.41

Your companion to Nepal Stock Market

AAKASH CAPITAL LIMITED Weekly Newsletter from Aakash Capital Limited for the week ending on 17th July, 2020

NEPSE UPDATE

Indicators 12th July, 2020

16th July, (+)/(-)

2020 Change %

NEPSE 1331.10 1394.77 4.78%

SENSITIVE 280.41 295.06 5.22%

FLOAT 93.08 98.02 5.31%

SEN. FLOAT 91.77 97.41 6.15%

BANKING 1124.47 1193.99 6.18%

TRADING 860.23 889.96 3.46%

HOTELS 1527.59 1480.00 -3.12%

DEVELOPMENT BANKS 1707.13 1771.48 3.77%

HYDROPOWER 957.06 976.10 1.99%

FINANCE 653.16 671.53 2.81%

NON LIFE INSURANCE 6157.57 6324.55 2.71%

MANU. & PRO. 2720.11 2747.24 1.00%

OTHERS 755.91 775.31 2.57%

MICROFINANCE 2246.56 2445.46 8.85%

LIFE INSURANCE 8007.37 8218.48 2.64%

MUTUAL FUND 9.92 10.48 5.65%

Market Summary Statistics (12th to 16th July, 2020)

Total Turnover (Rs) 5,396,613,888

Total Traded Shares 15,107,578 Total Number of Transactions 79,209 Scrips Traded 189

Market Cap at Week start 1,746,357.73 Millions

Market cap at Week end 1,835,428.29 Millions

Floated Market Cap at Week start 612,488.06 Millions

Floated Market Cap at Week end 655,182.41 Millions

Bullion Update

As on 17th July 2020 Hallmark Gold Rs.92,200/tola

Worked Gold Rs.91,760/tola

Silver Rs.980/tola

Quote for the week

“The stock market is a device for transferring money

from the impatient to the patient”. – Warren Buffett

The market increased by 4.78% (63.67 points) in the

trading week between 12th and 16th July 2020. The

sensitive index, which measures the performance of

the companies classified under group “A”, also

registered the rise of 5.22% (14.65 points). Similarly,

float index which measures the performance of

securities which are floated to public also went up by

5.31% and sensitive float followed the trend by

increasing 6.15%.

This week market opened at 1331.10 on Sunday and

went up 9.19 points to sit at 1340.29 level. Market has

shown positive sentiments in the review week. Market

gained 2.11 points on Monday, 5.04 points on Tuesday,

14.9 points on Wednesday and 32.43 points on

Thursday to end the week at 1394.77 level.

In this review period, all the sub-index closed higher

except the Hotels sub-index. Microfinance sub-index

gained the most with 8.85% in the review period. In a

week led by Banking and Financial Institution, Banking

sub-index also registered the gain with 6.18%.

Similarly, Trading, Development Banks, Hydropower,

Finance, Non-Life Insurance, Manu. & Pro., Others, Life

Insurance and Mutual Fund sub-index registered the

gain of 3.46%, 3.77%, 1.99%, 2.81%, 2.71%, 1%, 2.57%,

2.64% and 5.64% respectively. However, Hotels sub-

index declined by 3.12% with 47.59 points.

The market witnessed stable volume of transaction

turnover this week. The total turnover stood at Rs.5.39

billion with average of Rs.1.07 billion a day. The total

market value increased by Rs.89,070.56 million as the

market capitalization went up by 5.1%. Similarly,

floated market cap also registered the rise of 6.97%

this trading week.

.

Market Announcements

IPO allotment of Ajod Insurance concludes; lucky 2,73,000 investors get 10 units each and remaining 2,11,498

applicants return empty hand.

Mountain Energy Nepal Limited has published an offer letter to issue 19,68,020 units IPO shares to the project-

affected locals' residents of Nuwakot and Myagdi District from (8th Shrawan to 22nd Shrawan, 2077).

Grameen Bikas Laghubitta Bittiya Sanstha Limited has allotted auction of 81,294 units promoter shares of RMDC

Laghubitta Bittiya Sanstha Limited.

Sadhana Laghubitta Bittiya Sanstha Limited has allotted its 7,07,800 units IPO shares to the general public, employees,

and mutual fund on 29th Ashad, 2077.

Nepal Investment Bank Limited is paying interest and principal to the bondholders of "Nepal Investment Bank Bond-

2077".

Himalayan General Insurance Company Limited is distributing a 3.75% cash dividend directly to bank accounts of its

shareholders.

Sana Kisan Laghubitta Bittiya Sanstha Limited urges its shareholders to collect uncollected due dividend.

Himalayan Bank Limited has appointed Himalayan Capital Limited as its share registrar.

Forward Community Microfinance Bittiya Sanstha Limited has appointed NMB Capital Limited as its share registrar.

Butwal Power Company Limited has appointed Nabil Investment Banking Limited as its share registrar.

NIBL Ace Capital Limited has published a notice to pay annual charges for DEMAT account renewal.

Laxmi Capital Market Limited has published a notice to pay annual charges for DMAT account renewal.

Jyoti Bikas Bank Limited has published a notice regarding the interest rate of various deposits and loans.

Mahalaxmi Bikas Bank Limited has published a notice regarding the interest rate on various deposit and loan products

and its effective from 31st Ashad, 2077.

Rastriya Banijya Bank Limited has published a notice regarding the various loan interest rate and its effective from 1st

Shrawan, 2077.

Nabil Bank Limited has published a notice regarding the new fixed deposit interest rate and its effective from 1st

Shrawan, 2077.

Samriddhi Finance Company Limited has published a notice regarding the new interest rate and its effective from 30th

Ashad, 2077.

Kanchan Development Bank Limited has published a notice regarding the interest rate on the various loans and

deposits and its effective from 1st Shrawan, 2077.

United Finance Limited has published a notice regarding the interest rate of various deposit and loan products.

NMB Bank Limited has published a notice regarding the relocation of its branches.

Unilever Nepal Limited has posted a net loss of Rs 76.3 million and published its 3rd quarter company analysis of the

fiscal year 2076/77.

Soaltee Hotel Limited has posted a net profit of Rs 140.54 million and published its 3rd quarter company analysis of

the fiscal year 2076/77.

Taragaon Regency Hotels Limited has posted a net profit of Rs 257.80 million and published its 3rd quarter company

analysis of the fiscal year 2076/77.

Oriental Hotels Limited has posted a net profit of Rs 114.69 million and published its 3rd quarter company analysis of

the fiscal year 2076/77.

Ngadi Group Power Limited has posted a net profit of Rs 46.91 million and published its 3rd quarter company analysis

of the fiscal year 2076/77.

Rasuwagadhi Hydropower Company Limited has posted a net loss of Rs 64.02 million and published its 3rd quarter

company analysis of the fiscal year 2076/77.

https://www.sharesansar.com/announcementdetail/ajod-insurance-limited-has-thanks-all-its-stakeholders-for-successful-subscription-of-its-recently-issued-ipo-shareshttps://www.sharesansar.com/announcementdetail/ajod-insurance-limited-has-thanks-all-its-stakeholders-for-successful-subscription-of-its-recently-issued-ipo-shareshttps://www.sharesansar.com/newsdetail/ipo-allotment-of-ajod-insurance-concludes-lucky-273000-investors-get-10-units-each-and-remaining-211498-applicants-return-empty-handhttps://www.sharesansar.com/announcementdetail/mountain-energy-nepal-limited-has-published-an-offer-letter-to-issue-1968020-units-ipo-shares-to-the-project-affected-locals-residents-of-nuwakot-and-myagdi-district-from-8th-shrawan-to-22nd-shrawan-2077https://www.sharesansar.com/announcementdetail/mountain-energy-nepal-limited-has-published-an-offer-letter-to-issue-1968020-units-ipo-shares-to-the-project-affected-locals-residents-of-nuwakot-and-myagdi-district-from-8th-shrawan-to-22nd-shrawan-2077https://www.sharesansar.com/announcementdetail/grameen-bikas-laghubitta-bittiya-sanstha-limited-has-allotted-auction-of-81294-units-promoter-shares-of-rmdc-laghubitta-bittiya-sanstha-limitedhttps://www.sharesansar.com/announcementdetail/grameen-bikas-laghubitta-bittiya-sanstha-limited-has-allotted-auction-of-81294-units-promoter-shares-of-rmdc-laghubitta-bittiya-sanstha-limitedhttps://www.sharesansar.com/announcementdetail/sadhana-laghubitta-bittiya-sanstha-limited-has-allotted-its-707800-units-ipo-shares-to-the-general-public-employees-and-mutual-fund-on-29th-ashad-2077https://www.sharesansar.com/announcementdetail/sadhana-laghubitta-bittiya-sanstha-limited-has-allotted-its-707800-units-ipo-shares-to-the-general-public-employees-and-mutual-fund-on-29th-ashad-2077https://www.sharesansar.com/announcementdetail/nepal-investment-bank-limited-is-paying-interest-and-principal-to-the-bondholders-of-nepal-investment-bank-bond-2077https://www.sharesansar.com/announcementdetail/nepal-investment-bank-limited-is-paying-interest-and-principal-to-the-bondholders-of-nepal-investment-bank-bond-2077https://www.sharesansar.com/announcementdetail/himalayan-general-insurance-company-limited-is-distributing-a-375-cash-dividend-directly-to-bank-accounts-of-its-shareholdershttps://www.sharesansar.com/announcementdetail/himalayan-general-insurance-company-limited-is-distributing-a-375-cash-dividend-directly-to-bank-accounts-of-its-shareholdershttps://www.sharesansar.com/announcementdetail/sana-kisan-laghubitta-bittiya-sanstha-limited-urges-its-shareholders-to-collect-uncollected-due-dividendhttps://www.sharesansar.com/announcementdetail/sana-kisan-laghubitta-bittiya-sanstha-limited-urges-its-shareholders-to-collect-uncollected-due-dividendhttps://www.sharesansar.com/announcementdetail/himalayan-bank-limited-has-appointed-himalayan-capital-limited-as-its-share-registrarhttps://www.sharesansar.com/announcementdetail/himalayan-bank-limited-has-appointed-himalayan-capital-limited-as-its-share-registrarhttps://www.sharesansar.com/announcementdetail/forward-community-microfinance-bittiya-sanstha-limited-has-appointed-nmb-capital-limited-as-its-share-registrarhttps://www.sharesansar.com/announcementdetail/forward-community-microfinance-bittiya-sanstha-limited-has-appointed-nmb-capital-limited-as-its-share-registrarhttps://www.sharesansar.com/announcementdetail/butwal-power-company-limited-has-appointed-nabil-investment-banking-limited-as-its-share-registrarhttps://www.sharesansar.com/announcementdetail/butwal-power-company-limited-has-appointed-nabil-investment-banking-limited-as-its-share-registrarhttps://www.sharesansar.com/announcementdetail/nibl-ace-capital-limited-has-published-a-notice-to-pay-annual-charges-for-demat-account-renewalhttps://www.sharesansar.com/announcementdetail/nibl-ace-capital-limited-has-published-a-notice-to-pay-annual-charges-for-demat-account-renewalhttps://www.sharesansar.com/announcementdetail/laxmi-capital-market-limited-has-published-a-notice-to-pay-annual-charges-for-dmat-account-renewalhttps://www.sharesansar.com/announcementdetail/laxmi-capital-market-limited-has-published-a-notice-to-pay-annual-charges-for-dmat-account-renewalhttps://www.sharesansar.com/announcementdetail/jyoti-bikas-bank-limited-has-published-a-notice-regarding-the-interest-rate-of-various-deposits-and-loanshttps://www.sharesansar.com/announcementdetail/jyoti-bikas-bank-limited-has-published-a-notice-regarding-the-interest-rate-of-various-deposits-and-loanshttps://www.sharesansar.com/announcementdetail/mahalaxmi-bikas-bank-limited-has-published-a-notice-regarding-the-interest-rate-on-various-deposit-and-loan-products-and-its-effective-from-31st-ashad-2077https://www.sharesansar.com/announcementdetail/mahalaxmi-bikas-bank-limited-has-published-a-notice-regarding-the-interest-rate-on-various-deposit-and-loan-products-and-its-effective-from-31st-ashad-2077https://www.sharesansar.com/announcementdetail/rastriya-banijya-bank-limited-has-published-a-notice-regarding-the-various-loan-interest-rate-and-its-effective-from-1st-shrawan-2077https://www.sharesansar.com/announcementdetail/rastriya-banijya-bank-limited-has-published-a-notice-regarding-the-various-loan-interest-rate-and-its-effective-from-1st-shrawan-2077https://www.sharesansar.com/announcementdetail/nabil-bank-limited-has-published-a-notice-regarding-the-new-fixed-deposit-interest-rate-and-its-effective-from-1st-shrawan-2077https://www.sharesansar.com/announcementdetail/nabil-bank-limited-has-published-a-notice-regarding-the-new-fixed-deposit-interest-rate-and-its-effective-from-1st-shrawan-2077https://www.sharesansar.com/announcementdetail/samriddhi-finance-company-limited-has-published-a-notice-regarding-the-new-interest-rate-and-its-effective-from-30th-ashad-2077https://www.sharesansar.com/announcementdetail/samriddhi-finance-company-limited-has-published-a-notice-regarding-the-new-interest-rate-and-its-effective-from-30th-ashad-2077https://www.sharesansar.com/announcementdetail/kanchan-development-bank-limited-has-published-a-notice-regarding-the-interest-rate-on-the-various-loans-and-deposits-and-its-effective-from-1st-shrawan-2077https://www.sharesansar.com/announcementdetail/kanchan-development-bank-limited-has-published-a-notice-regarding-the-interest-rate-on-the-various-loans-and-deposits-and-its-effective-from-1st-shrawan-2077https://www.sharesansar.com/announcementdetail/united-finance-limited-has-published-a-notice-regarding-the-interest-rate-of-various-deposit-and-loan-productshttps://www.sharesansar.com/announcementdetail/united-finance-limited-has-published-a-notice-regarding-the-interest-rate-of-various-deposit-and-loan-productshttps://www.sharesansar.com/announcementdetail/nmb-bank-limited-has-published-a-notice-regarding-the-relocation-of-its-brancheshttps://www.sharesansar.com/announcementdetail/nmb-bank-limited-has-published-a-notice-regarding-the-relocation-of-its-brancheshttps://www.sharesansar.com/announcementdetail/unilever-nepal-limited-has-posted-a-net-loss-of-rs-763-million-and-published-its-3rd-quarter-company-analysis-of-the-fiscal-year-207677https://www.sharesansar.com/announcementdetail/unilever-nepal-limited-has-posted-a-net-loss-of-rs-763-million-and-published-its-3rd-quarter-company-analysis-of-the-fiscal-year-207677https://www.sharesansar.com/announcementdetail/soaltee-hotel-limited-has-posted-a-net-profit-of-rs-14054-million-and-published-its-3rd-quarter-company-analysis-of-the-fiscal-year-207677https://www.sharesansar.com/announcementdetail/soaltee-hotel-limited-has-posted-a-net-profit-of-rs-14054-million-and-published-its-3rd-quarter-company-analysis-of-the-fiscal-year-207677https://www.sharesansar.com/announcementdetail/taragaon-regency-hotels-limited-has-posted-a-net-profit-of-rs-25780-million-and-published-its-3rd-quarter-company-analysis-of-the-fiscal-year-207677https://www.sharesansar.com/announcementdetail/taragaon-regency-hotels-limited-has-posted-a-net-profit-of-rs-25780-million-and-published-its-3rd-quarter-company-analysis-of-the-fiscal-year-207677https://www.sharesansar.com/announcementdetail/oriental-hotels-limited-has-posted-a-net-profit-of-rs-11469-million-and-published-its-3rd-quarter-company-analysis-of-the-fiscal-year-207677https://www.sharesansar.com/announcementdetail/oriental-hotels-limited-has-posted-a-net-profit-of-rs-11469-million-and-published-its-3rd-quarter-company-analysis-of-the-fiscal-year-207677https://www.sharesansar.com/announcementdetail/ngadi-group-power-limited-has-posted-a-net-profit-of-rs-4691-million-and-published-its-3rd-quarter-company-analysis-of-the-fiscal-year-207677https://www.sharesansar.com/announcementdetail/ngadi-group-power-limited-has-posted-a-net-profit-of-rs-4691-million-and-published-its-3rd-quarter-company-analysis-of-the-fiscal-year-207677https://www.sharesansar.com/announcementdetail/rasuwagadhi-hydropower-company-limited-has-posted-a-net-loss-of-rs-6402-million-and-published-its-3rd-quarter-company-analysis-of-the-fiscal-year-207677https://www.sharesansar.com/announcementdetail/rasuwagadhi-hydropower-company-limited-has-posted-a-net-loss-of-rs-6402-million-and-published-its-3rd-quarter-company-analysis-of-the-fiscal-year-207677

NEPSE - TECHNICAL ANALYSIS

The Nepalese stock market (NEPSE) has ended its three and half years of bearish trend in mid-Jan 2020 as seen from weekly

trend line perspective. The bearish trend was started in July 2016 when index was at 1881 level. Currently, Market is retracing

from support level of 1188 after falling from 1632 level. In the review week, NEPSE opened at 1331.10 and formed a green candle

by closing at 1340.29 gaining 9.19 points during the day. The overall market gained 63.67 points as it closed at 1394.77 level on

Thursday. In daily line chart, market has already tested the resistance level of 1350 level and moving towards resistance level of

1224. Supportive turnover was seen in the review week as the average turnover has increased to Rs.1.07 billion from Rs.1.03

million of previous week. As of weekly line chart 1632 level might be considered as the resistance level.

TECHNICAL INDICATORS

Indicators Value Signal

Support (S1) 1424 -

Resistance (R1) 1340 -

Relative Strength Index (RSI) 58.75 Moderate Zone

Moving Average Convergence Divergence (MACD) 2.66 Bullish

5-Day Exponential Moving Average (EMA) 1357.44 Bullish

20-Day Exponential Moving Average (EMA) 1293.21 Bullish

180-Day Exponential Moving Average (EMA) 1236.03 Bullish

Relative Strength Index (RSI) Analysis

RSI is a moment indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions

in the price of a stock. RSI is typically used on a 14-day time frame, measured on a scale from 0 to 100, where a value above 70

represents overbought and below 30 represents oversold condition.

Current RSI value of NEPSE is 58.75 which indicates that the market is at moderate zone. There is no any formation of divergence

in short term chart.

Bollinger Band

Bollinger band is a technical indicator that consists of a set of lines plotted two standard deviations up and below a 21-day simple

moving average. The bands are an indication of volatility; a widening gap indicates higher volatility and vice-versa. Prices are

relatively high when above the upper band and low when below the lower band.

The upper, middle and the lower bands are at 1402.94, 1293.21 and 1183.48 respectively. The market is trading just below the

upper band which indicates the market is moving towards resistance zone.

Stock Analysis: Sadhana Laghubitta Bittiya Sanstha Ltd

Sadhana Laghubitta Bittiya Sanstha Ltd incorporated as a Public limited company in 2073 under Company Act 2063 is a ‘D’ class National Level Financial Institution. Sadhana has started its financial operation from 22nd Karthik 2074 after getting the license from Nepal Rastra Bank as 10 district level institution. It was later upgraded to national level class D microfinance institution after acquisition of Aarthik Samriddhi Laghubitta Bittiya Sanstha (10 district level), starting joint operation from Shrawan 2076. Its main objective is to provide microfinance services to the poor and needy families living in rural areas who are basically economically disadvantaged, and who are far from the access of banking services. The Organization aims to improve the quality of their family life and establish them in the society by providing loans to women and men who are living in rural areas, especially on group base collateral. Engaging them in productive works and empowering them to build creative and self-reliant society and financially literate by investing small amount of loans on small enterprises, agricultural production, trade, business operation, goat rising, poultry farm and so on has been the main objectives.

Board of Directors

Name Designation

Mr. Krishna Bahadur Thapa Chairman

Dr. Narhari Dhakal Director

Mr. Ramesh Sapkota Director

Mr. Radhakrishna Bhandari Director

Mr. Arjun Kumar Sing Director

(Source: https://sadhanalaghubitta.com.np/)

Chief Executive Officer: Resham Neupane

Capital Structure (Asar end 2076)

Authorized Capital (Rs.) 200,000,000

Issued Capital (Rs.) 105,000,000

Paid Up Capital (Rs.) 73,500,000

Share Ownership Details (Asar end 2076)

S.N. Particulars Amount (Rs.) Ownership (%)

1 Domestic Ownership 73,500,000 100.00%

1.1 Nepal Government - -

1.2 “A” Class Licensed Institutions 10,000,000 13.61%

1.3 Other Licensed Institutions 10,000,000 13.61%

1.4 Other Institutions - -

1.5 Public - -

1.6 Other Promoters 53,500,000 72.79%

2 Foreign Ownership - -

Total 73,500,000 100.00%

67%

33%

Share capital structure after the issue

Promoter Group General Public (Including Employees)

https://sadhanalaghubitta.com.np/

Financial Analysis

Particulars Yearly Analysis

Quarterly Analysis

2074/75 (Rs.000)

2075/76 (Rs.000)

Growth (%)

2075/76, Q3 (Rs.000)

2076/77, Q3 (Rs.000)

Growth (%)

Share Capital 49,000.00 73,500.00 50.00% 49,000.00 147,000.00 200%

Reserves & Surplus 43.89 22,308.52 50723.38% 11,460.63 40,268.86 251%

Total Equity 49,043.89 95,808.52 95.35% 60,460.63 187,268.86 210%

Deposit Liabilities 55,314.94 280,022.34 406.23% 168,189.32 431,638.01 157%

Borrowings 267,808.01 846,611.63 216.13% 599,489.28 1,172,481.52 96%

Loans & Advances 347,326.36 1,181,589.09 240.20% 815,336.43 1,705,244.47 109%

Other Liabilities 3,502.80 11,736.36 235.06% 31,049.08 103,807.73 234%

Total Assets 375,669.65 1,234,178.86 228.53% 859,188.31 1,895,196.12 121%

Interest Income 18,421.33 113,823.55 517.89% 75,943.43 181,568.99 139%

Net Interest Income 5,222.23 46,293.79 786.48% 31,948.38 75,073.27 135%

Total Operating Income

18,351.25 76,979.27 319.48%

53,458.63 116,839.13 119%

Personnel Expenses 8,974.47 30,852.57 243.78% 21,149.32 49,287.51 133%

Other Expenses 9,334.86 27,845.81 198.30% 20,892.57 48,459.92 132%

Net Profit 41.93 18,280.90 43496.47% 11,416.74 19,091.70 67%

Book Value Per share (Rs.)

100.09 130.35 30.24%

123.39 127.39 3%

No. of Staff 74.00 186.00 151.35% - - -

No. of Branches - - - - 60 -

Sadhana Laghubitta Bittiya Sanstha Limited has just floated IPO shares to general public to make participation of 33% general public including employees. As of 2075/76, institution has shown outstanding growth in most of its fundamentals. Most microfinance institutions show aggressive growth basically in the initial years of operation due growth in capital mobilization. Sadhana Laghubittta increased its paid up capital from Rs.49 million to Rs.73.5 million in 2075/76. It was able to mobilize more than a billion rupees capital in the same FY including 75% borrowing & 25% Deposits Liabilities which helped the institution to grow substantially. The company has reported Rs.22.30 million of Reserves & Surplus, Rs.280 million of Total Equity, and Rs.1.23 billion of Asset size in 75/76. Similarly, in 2075/76 company was able to generate Rs.113.82 million of interest income, Rs.46.29 million of net interest income & Rs.76.97 million of Total operating income which have let net income to grow to Rs.18.28 million. Net interest income in 2074/75 was Rs.5.22 million which couldn’t even cover the personnel expenses. However, due to increase in operating income it was able to make its net profit at Rs.41.93 thousand. However in 2075/76 most of the financial indicators have shown abnormal growth due to new share capital injected by promoters and huge capital mobilization as compared to the previous year.

As of unaudited third quarter report of 2076/77, Sadhana Laghubitta has shown outstanding financial performance as compared to corresponding quarter of 2075/76, Core fundamentals like Reserve & Surplus, Equity, Deposit Liabilities, Borrowings, Loans & Advances, Assets size have grown by more than 100%. Similarly, Interest Income has increased by 139% to Rs.181.56 million, Total operating income by 119% which have let Net Profit to grow by 67% to Rs.19.09 million.

Profitability

Particulars Yearly Analysis

Quarterly Analysis

2074/75 2075/76

Growth (%)

2075/76, Q3

2076/77, Q3

Growth (%)

Earnings Per Share (Rs.) 0.09 24.87 27533% 23.30 12.99 -44.26%

Return on Assets (%) 0.01% 1.48% 13170% 1.33% 1.01% -24.19%

Return on Equity (%) 0.09% 19.08% 22217% 18.88% 10.19% -46.01%

Gross Profit Margin (%) 28.35% 40.67% 43% 42.07% 41.35% -1.72%

Personnel Expenses to Gross Profit Ratio (%)

171.85% 66.65% -61% 27.85% 27.15% -2.53%

Net Profit Ratio (%) 0.23% 16.06% 6956% 15.03% 10.51% -30.06%

As of unaudited third quarter report of 2076/77, company seems unable to maintain positive growth in its major profitability ratios like EPS which have declined by 44.26% as compared to the corresponding quarter of previous fiscal year. Similarly, ROA has declined by 24.19%, ROE by 46.01% to 10.19%. Profitability ratios have declined due to increase in shares outstanding resulted from additional capital of Rs.98 million injected by promoters. Gross profit margin and Personnel Expenses to Gross Profit ratio seems stable as compared to other indicators. However, Net Profit ratio has declined by 30.06% to 10.51%.

Major Regulatory Requirements

Particulars Yearly Analysis

Quarterly Analysis

2074/75 2075/76 Growth

(%) 2075/76,

Q3 2076/77,

Q3 Growth

(%)

Capital Adequacy (On Risk Weighted Assets)

Core Capital 13.54% 7.09% -48% - - -

Total Capital Fund 14.52% 8.08% -44% 8.26% 10.92% 32.20%

Liquidity (CRR) 0.58% 0.56% -3% - - -

Non-Performing Loan(NPL) to Total Loan - 0.16% - 0.02% 1.67% 8250.00%

Total Loan Loss Provision to Total NPL - - - 4108.95% 99% -97.58%

Cost of Funds - - - 11.37% 10.12% -10.99%

CD Ratio - - - 356.94% 395.06% 10.68%

Weighted Average Interest Rate Spread 2.95% 6.43% 118% - - -

As a national level microfinance institution it is supposed to meet paid up capital of Rs.100 million and as of Q3 of 2076/77 it has Rs.147 million in its share capital. After the issuance of IPO its paid up capital would be Rs.217.78 million. Similarly, in terms of maintaining Capital Adequacy Ratio (CAR), company has able to maintain Capital Adequacy in both Core Capital & Total Capital Fund as directed by Nepal Rastra Bank.

Financial Highlights

Concluding remarks

Sadhana Laghubitta Bittiya Sanstha Limited is a national level microfinance institution operating in 22 districts through 60

branches. Within a short span of operation it has able to maintain healthy performance with fulfillment of regulatory

requirements. Promoted by 92 promoters, including two BFIs Nepal Credit and Commerce and Shangrila Development Bank

Ltd with share of 27% and by individuals 73%. Most of the fundamental indicators of the company are growing and has potential

to grow further in the Nepalese emerging market where less than 50% of population have access to the financial system. In

Overall, company seems to be in a stable position and can become one of the catalyst for the economic development of the

country. However, its operations have been affected with overall microfinance industry due to nation-wide lockdown by Nepal

government to fight against Corona Virus (COVID-19) pandemic.

49,000.00

73,500.00

43.89

22,308.52

-

20,000.00

40,000.00

60,000.00

80,000.00

2074/75 2075/76

Share Capital and Reserve & Surplus

Share Capital (Rs.000) Reserves & Surplus (Rs.000)

323,122.96

1,126,633.97

347,326.36

1,181,589.09

-

500,000.00

1,000,000.00

1,500,000.00

2074/75 2075/76

Capital Mobilization vs Loan & Advances

Capital Mobilization (Rs.000) Loans & Advances (Rs.000)

8,974.47

30,852.57

41.93

18,280.90

-

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

2074/75 2075/76

Net Profit vs Personnel Expenses

Personnel Expenses (Rs.000) Net Profit (Rs.000)

0.01%

1.48%0.09%

19.08%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2074/75 2075/76

ROA vs ROE

Return on Assets (%) Return on Equity (%)

The following table shows the total dividend declared by National Level Microfinance Companies from the profit of 2075/76

Symbol Company Name Dividend Total Dividend

(%) Bonus (%) Cash (%)

AMFI Aarambha Laghubitta Bittiya Sanstha Limited 7.38 0.00 7.38

CHLBS Chautari Laghubitta Bittiya Sanstha Limited 7.00 10.89 17.89

GLBSL Gurans Laghubitta Bittiya Sanstha Limited 7.61 0.40 8.01

JSLBB Janautthan Samudayic Laghubitta Bikas Bank Limited 25.00 1.32 26.32

KMFL Kisan Microfinance Bittiya Sanstha Limited 23.95 1.14 25.09

MLBBL Mithila Laghubitta Bittiya Sanstha Limited 15.00 0.78 15.78

MMFDB Mirmire Laghubitta Bittiya Sanstha Limited 45.00 2.36 47.36

MSLB Mahuli Samudayik Laghubitta Bittiya Sanstha Limited 20.00 11.58 31.58

NAGRO Nepal Agro Laghubitta Bittiya Sanstha Limited 15.00 0.00 15.00

NBBL Nagbeli Laghubitta Bikash Bank Limited 26.00 1.37 27.37

NNLB Naya Nepal Laghubitta Bikas Bank Limited 20.00 1.05 21.05

NSEWA Nepal Seva Laghubitta Bittiya Sanstha Limited 2.50 0.13 2.63

SLBS Suryodaya Laghubitta Bittiya Sanstha Limited 44.47 2.34 46.81

SLBSL Samudayik Laghubitta Bittiya Sanstha Limited 32.00 1.68 33.68

SMATA Samata Laghubitta Bittiya Sanstha Limited 5.00 5.53 10.53

SMB Support Microfinance Bittiya Sanstha Limited 10.00 0.53 10.53

SMFDB Summit Laghubitta Bittiya Sanstha Limited 21.09 1.11 22.20

SPARS Sparsha Laghubitta Bittiya Sanstha Limited 13.00 0.68 13.68

UMB Unnati Laghubitta Bittiya Sanstha Limited 38.60 2.03 40.63

https://www.sharesansar.com/company/mslbhttps://www.sharesansar.com/company/mslb

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