Butwal Power Company Limited (BPCL)

Butwal Power Company Limited (BPCL) is one of the leading hydro power company of Nepal.
In the third quarter of 2077/78, its annualized earning per share stands at Rs. 15.54 which was
just Rs. 4.69 in second quarter, the net worth per share is Rs. 235.50 and the P/E ratio stood at
27.35 times. Similarly, the net profit of the company in the third quarter is Rs. 458.65 million
which increased by 231.4% compared to the second quarter. BPCL has also done fair in terms of
Capital Employed. In Q3 2077/78 the company has ROCE at 6.46% which was just 2.17% in Q2
.The Company has also been able to increase its Net worth overtime which is also a positive
signal for investment. The company has also been providing consistent return to the shareholders
for the past few years. In the year 2076/77 the company provided 25% dividend to its
stockholders. The company has relatively strong fundamentals, pays a handsome dividend and
shows a fair amount of growth. This made the company an attractive investment option for us.

Goodwill Finance Company Limited (GFCL)

As of the third quarter of FY 2077/78, Goodwill Finance Company Limited (GFCL) reported a
net worth of Rs.171.29 per share and became the second company having highest net worth
among the finance companies. The company has an EPS of Rs. 23.08 which is above average of
the finance sector. The net profit of the company for Q3 is Rs. 150.09 million which is 35.4%
more compared to the profit earned in the Q3 of the previous fiscal year. Similarly, the P/E ratio
of the company is 11.66 and the Return on Equity (ROE) is 13.47. The company has also been
providing stockholders with regular dividend income in between 10% to 26% in past few years.
So, looking at the performance data, we decided to pick Goodwill Finance for the investment.

Progressive Finance Limited (PROFL)

Even though the company has below average Earning per Share and Net Worth in finance sector,
the financial report of PROFL in the third quarter of FY 2077/78 showed a very good
performance data compared to previous quarters and fiscal years. The company reported a net
profit of Rs.35.97 million in the Q3 of FY 3077/78 which is 27.6% more than the second quarter.
The liquidity ratio is 29.76 and the company has been able to increase its reserve and surplus to
Rs. 43.99 million which has certainly increased the shareholder's value. The financial report
shows that the company’s reserve and liquidity position remained strong through the quarter. The
company also shows the sign of growth and increases it’s EPS as the EPS has increased to Rs.
4.5 in Q3 of FY 2077/78 from Rs.3.16 in Q3 of FY 2076/77. Further looking, the net worth of
the company as well as the share price of the company has been increasing over past few years.
Thus, we think that the company has a growth potential and because of this we decided to
purchase its share.