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HPPL and RFPL are hydro-power projects listed under NEPSE. Both of these companies had issued right shares in the fiscal year of 2082/83 resulting in the increase of their paid-up capital.
HPPL has the paid-up capital of Rs. 1,598,125,500 according to its financial report of 4th quarter of fiscal year 2082/83. As HPPL has issued right shares of 1:0.5 ratio, its paid-up capital has increased in the fourth quarter and share premium has also been shown as 4,68,740 shares had been auctioned as ordinary shares.
Table: Financial analysis of HPPL
|
Company |
4th Quarter |
Paid-up Capital(NPR) |
Share Premium (NPR) |
EPS |
Net worth per share |
Dividend capacity |
|
HPPL |
2080/81 |
1,065,417,000 |
- |
-24.62 |
109.29 |
- |
|
|
2081/82 |
1,065,417,000 |
- |
6.82 |
116.10 |
16.10 |
|
|
2082/83 |
1,598,125,500 |
117,310,666 |
12.57 |
130.56 |
30.56 |
As for RFPL, it has the paid-up capital of Rs. 1,40,00,00,000 as shown in the financial report of 4th quarter of fiscal year 2082/83. RFPL had issued 1:1 ratio of right shares and auctioned 1,038,924 units.
Table: Financial analysis of RFPL
|
Company |
4th Quarter |
Paid-up Capital(NPR) |
EPS |
Net worth per share |
Dividend capacity |
|
RFPL |
2080/81 |
70,00,00,000 |
8.82 |
100.14 |
0.14 |
|
|
2081/82 |
70,00,00,000 |
0.15 |
100.52 |
0.52 |
|
|
2082/83 |
1,40,00,00,000 |
2.71 |
119.78 |
19.78 |
As we can see, there is a notable change in both company’s EPS and net worth capacity following the right share issue and paid up capital increase. The P/E ratio of HPPL and RFPL are 30.19 and 124.61 respectively while PBV ratio are 2.91 and 2.82 respectively. We can say that compare to some of the companies with similar paid up capital and similar market share price, these two seem better for the investors as their profitability has increased and have shown significant improvement in the fundamental indicators.
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