A total of 246 companies are currently trading in the secondary market. Among these, almost all have published their second-quarter financial reports for the current fiscal year. This provides investors with crucial information to understand the financial status and performance of these companies.
Understanding Earnings Per Share (EPS)
EPS is calculated by dividing the company’s net profit by the total number of shares issued. It represents the amount of profit a company earns for each share held by investors. Essentially, EPS reflects the income generated by the company per share. A higher EPS indicates a company is not operating at a loss and has a greater likelihood of better returns for investors.
Example: If a company earns Rs. 10 crore in profit and has issued 10 lakh shares,
EPS = Rs. 10 crore ÷ 10 lakh = Rs. 100.
Top 10 Companies Based on EPS
Interestingly, none of the top 10 companies based on EPS belong to seven major sectors, including banking, development banks, finance, hotel and tourism, others, trading, and life insurance. However, the microfinance sector has performed exceptionally well, with four companies making it to the top 10 list. Additionally, the list includes two hydropower companies, one investment company, two manufacturing companies, and one non-life insurance company.
Top Performer: Unilever Nepal
Unilever Nepal stands out as the company with the highest EPS in the market. It is also the most expensive company in terms of share price. This highlights its strong financial performance and investor confidence.
Conclusion
Out of the 246 companies trading in the secondary market, most have published their second-quarter financial reports for the current fiscal year. These reports help investors understand a company’s performance and profitability. EPS is a key indicator of a company’s profit-making ability, and based on this metric, microfinance sector companies have dominated the top 10 list.