Nesdo vs jalpa? As per q3 2079/80

I am leaning towards nesdo because of

– lesser increase in interest expenses
– less staff expenses

But nesdo has bit higher NPL and no provision for possible loss. Provision for possible loss is what turned jalpa q3 earnings into negative. And it seems since nesdo also has high NPL, having no provision doesn’t make sense? I don’t understand.

Any help is appreciated.

View on r/NepalStock by roshamns


  1. How can you say NESDO doesn’t have provision for possible loss, it’s above 100% which is adequate provisions. If you carefully consider the provisions in balance sheets, its higher than NPL to Gross Loans.
    The Income statement figure just give you the provisions charged this year. NESDO has already charged enough provisions last year which was enough for 8% NPL. If NPL drops below 8% in the range of 4-5%, highly likely that they will reverse the provisions.

    I’m expecting a boost in EPS for NESDO once the credit condition is normalized. So definitely NESDO!
    I think you just look at the Income statement figure, provisions should be understood cumulatively!

  2. NESDO ma NPL ko issue malai thaha vaye samma pahila dekhi nai thiyo. Jalpa ni ramrai ho, kisan sanga merge ma jaadai xa kyare. So tread carefully there. Nepal ma swap ratio le praya jaso ramro company ko investor lai ghata nai pari rakhya hunxa.


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