Best Finance Company Stocks to Buy in Nepal 2023 with Highest EPS

While talking about investing in stock market in Nepal, there always comes that which are the best finance company to buy in Nepal 2023 in the finance sector. In this article, we will focus on some important fundamental indicators while talking about choosing the best finance company. 

Based on the 3rd quarter report of the fiscal year 2079/080 on some fundamental indicators, the top 5 best finance companies can be chosen.  There are various ways to select the best finance company. 

The performance of best finance companies and their progress on different fundamental indicators are different. This article will guide and help you to choose the best finance company to invest on the basis of different fundamental indicators. 

Before knowing how to choose the best finance company, let's understand a little bit about the finance companies that are listed on Nepal Stock Exchange. 

Finance Companies in Nepal Stock Exchange

The following are the finance companies whose shares are listed in Nepal Stock Exchange and traded. 

ICFC Finance Limited (ICFC) 

Manjushree Finance Limited (MFIL) 

Goodwill Finance Company Limited (GFCL)  

Gurkhas Finance Limited (GUFL)  

Pokhara Finance Limited (PFL)  

Shree Investment Finance Company Limited (SIFC)

Guheswori Merchant Banking & Finance Limited (GMFIL)  

Central Finance Limited (CFCL) 

Best Finance Company Limited (BFC)  

Reliance Finance Limited (RLFL) 

Nepal Finance Limited (NFS) 

Multipurpose Finance Company Limited (MPFL) 

Janaki Finance Company Limited (JFL) 

Progressive Finance Limited (PROFL) 

Samriddhi Finance Company Limited (former World Merchant Banking) (SFCL) 

Shares of all the above-mentioned finance companies have been trading on Nepal Stock Exchange. 

Now, let's talk about the ways to select the best finance companies to invest in Nepal. 

How to Select Best Finance Company in Nepal to Invest?

Every person has their own strategy to select the best finance company when deciding to invest. Some people focus on one fundamental indicator but others focus on other indicators. 

There are various fundamental indicators for selecting the best finance company. Among many fundamental indicators, investors choose some important and effective indicators. 

In general, the first and the most important fundamental indicator to see to select the best stock (best finance stocks) by investors is Earning Per Share (EPS). 

The other important fundamental indicators are Year to Year Growth (YoY Growth), return on equity (ROE), price-to-earning (PE) ratio, Reserve and Surplus, Net Profit, NPL and dividend history etc. 

By analyzing at least those fundamental indicators, investors have to decide to select the best finance company to invest in Nepal share market. 

Top and Best Finance Companies to Buy in Nepal 2023 Considering EPS, ROE, YoY Growth

We have already know that on what basis we can select best finance companies. Now we will see the best finance companies on the basis of different indicators. 

As already mentioned that investors see some important and effective fundamental indicators and the performance of the companies. It may be impossible to see every aspect of companies. 

Therefore, we will try to see the top best finance companies considering progress on some important fundamental indicators.

Based on the 3rd quarter report of fiscal year 2079/080, the following finance companies can be taken as best finance companies in 2023. 

Top and Best Finance Companies Based on Earning Per Share (EPS) 

As of 3rd quarter report, the following finance companies shown in the following image, from 1st to 5th position can be taken as the best finance company we the investor want to focus on EPS. 

5 Best Finance Companies and Their EPS

Best Finance Company Based on Return on Equity (RoE) 

If you think that the stocks should be selected on the basis of ROE, here are the top best finance company. 

According to the 3rd quarter report, the lists of finance companies shown in the following imge show the best finance companies on the basis of Return on Equity (ROE).

Top Finance Companies with ROE

From the list above mentioned in the image, you can choose the top finance companies as the best finance company, if you want to choose stocks on the basis of RoE indicator. 

Best Finance Company Based on Price to Earning (PE) Ratio

PE Ratio is one of the best fundamental indicators to choose stocks for investing. If you like to take PE Ratio as an important fundamental indicator while selecting the best finance companies, here is a list of companies in the following image whose PE ratio is mentioned. This is also based on the 3rd quarter report. 

Finance Companies with PE Ratio

You can choose one of the finance companies from the list above shown in the image, which has lower PE Ratio. 

Best Finance Company Based on Year to Year Growth

While selecting the best stocks for investing, some people also see the Year to Year Growth. Here is an image below with finance companies and their year to year growth. 

This following image will help you to understand year to year growth of finance companies. 

Finance Companies with Year to Year Growth

Based on year to year growth of finance companies, there are only two finance companies that have positive year to year growth until the 3rd quarter report. However, in the final quarter report of fiscal year 2079/080, finance companies may have positive year to year growth. 

Always Consider while Selecting Best Finance Company to Invest in Nepal

Selecting the best finance company to invest in Nepal share market is not so easy. Along with the major fundamental indicators mentioned above, you have to consider other aspects as well. 

Some of the other factors you have to consider are: Reserve and Surplus, Net income this year and very importantly the Non-Performing Loan (NPL). Also, you have to check the dividend history of finance companies. 

Note that the share market is the risky investing sector, you have to consider your risk factor.