52-Week Low & High Microfinance Shares in Nepal: Current Status and Future Outlook

The microfinance sector in Nepal has been moving sideways for a long time. The group sub-index has been fluctuating between 4,600 and 5,600. Recently, the index reached a swing high of nearly 4,900 but then closed at 4,671.74.

The national budget did not bring any immediate changes that could affect the capital market. So, investors are now waiting for the upcoming monetary policy. After the newly appointed Governor of Nepal Rastra Bank, Dr. Bishwanath Paudel, reduced the risk weight on margin loans from 125% to 100% during the third quarterly review, investor confidence grew.

Investors now hope that the following changes will be introduced in the next monetary policy:

• Removal of the current Rs. 15 crore limit on individual investment
• Removal of the 15% dividend cap on microfinance institutions
• Permission for banks and financial institutions to trade shares for less than one year

Governor Paudel’s public remarks have made investors hopeful that the upcoming monetary policy will be share-market friendly.

Despite the pressure on the market at the end of Ashar, investors are optimistic about a rebound afterward. Experts say microfinance and insurance stocks—whose prices have not surged yet compared to others—might offer better opportunities in the coming days.

Top 20 Microfinance Companies Nearest to 52-Week Low

Some microfinance companies are trading close to their 52-week low prices. These stocks may offer good value for long-term investors. Here are some examples:

• Nesdo Samriddhi Microfinance had a high of Rs. 2,641 and a low of Rs. 1,540 in the past year. It is currently trading near its lowest point.

• Sana Kisan Bikas Microfinance and Jan Utthan Community Microfinance are both trading less than 1% above their 52-week lows.

• Jeevan Bikas, NIC Asia, Infinity, Suryodaya Womi, RSDC, Asha, and Swabalamban Microfinance are trading just 1–3% above their yearly lows.

• Other companies like Unique Nepal, Bijaya, Forward, Nirdhan Utthan, Diprox, Mahuli, Nerude Mirmire, National, Samata Gharelu, and Laxmi Microfinance are also trading only 3–5.5% above their low points.

According to experts, these stocks could be worth watching for those looking to invest at lower prices.

Microfinance Stocks Near 52-Week High

Interestingly, a few companies are still trading near their 52-week highs even though the overall market is in a downtrend:

• Unnati Sahakarya Microfinance reached a high of Rs. 5,276 and is now trading at around Rs. 1,804.

• CYCL Nepal Microfinance had a high of Rs. 1,958 and is still trading at Rs. 1,615, which is relatively strong.

On the other hand, many microfinance stocks are trading 20–40% below their 52-week highs:

• Aatmanirbhar, Mahila, Grameen Bikas, Kalika, Global IME, Chhimek, Mero Microfinance, and Abhiyan are all trading 22% to 31% below their highs.

• NMB, First Microfinance, RSDC, Laxmi, Nirdhan Utthan, Diprox, Sana Kisan, Mithila, National, and Swabhiman are trading 34% to 44% below their 52-week highs.

These stocks may still have room to rise if the market recovers and favorable policies are introduced.

Conclusion

The microfinance sector in Nepal is at a turning point. While the market has been moving sideways, investor confidence is building, especially with hopes for a supportive monetary policy. Stocks near their 52-week lows may offer attractive entry points, while those holding near their highs show relative strength.

For both new and experienced investors, this could be a good time to study the microfinance sector closely and plan for the long term. As always, careful research and risk assessment are essential before making any investment decisions.