Which amongst the microfinance is better in your opinion if we take into consideration its current price? I am planning to buy one and so far I am inclining towards CBBL or JBLB. What is your take?

More at: r/NepalStock by glamour_fame

3 comments
  1. IMO, Mero Microfinance is very underrated. Good dividend history, great promoters, healthy growth, and reasonable priced.

  2. Namaste sathi

    First ask a few questions to one self

    1. Invest or trade?
    2. Why Microfinance?
    3. Which Micro?
    4. Price sensitive buy or Fundamental wise buy?
    5. Nepse Condition at the present?
    6. Holding Time?
    7. P/E ratio ( The best indicator)
    8. Nature of microfinance business?

    Kindly be informed about how micro finance works. These institution takes arabs of loan from commercial and development banks and provide loans to groups (Samuha). If the interest rates are cheap, they are highly profitable. However the interest rate of microfinances have gone up from 5-6% to 9-13% and the lending Cap is still 15%.

    The two MF you mentioned are the best in terms of Fundamentals with huge reserves and capital of their own and business growth is also good. But market is on a bearish trend. Purchasing based on price can be suicidal on the market. I like many veteran investors Keep on falling in this trap again and again. (Yo bhanda tala kati jala ra) is a lie.

    I would highly suggest you to wait till the Q3 performance if you plan on investing.

    ​

    Kura sabai ko sunum decision aafai lium

    ​

    sabai ko jay hos

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