Nepal Stock Exchange Limited, popularly known by its abbreviated form “NEPSE”, is the only stock exchange of Nepal which facilitates the open transactions of the securities (shares of public companies, debentures, mutual funds) through its members, market intermediaries like brokers & market makers.

With nearly 3 decades to its establishment, the stock exchange has evolved as a dominant platform for the investment to both commoners & aristocrats in key sectors like Banking & Finances, Insurance business, Hydropower, Trading & Manufacturing. Since inception, the NEPSE has focused on the facilitation & growth of the capital market in Nepal, serving diverse investment needs of people and contributing to nation building.

The Stock Exchange has paid up capital of 50 crores owned by Government of Nepal (58.66%), Nepal Rastra Bank (14.60%), Rastriya banijya Bank (6.14%), Employees Provident Fund (10%), Laxmi Bank (5%), Prabhu Bank (5%) & others (0. 60%).The companies listed in the stock exchange can be classified into various sectors as:

·        Commercial Banks

·        Development Banks

·        Finance companies

·        Microfinances

·        Life insurance business

·        Non-life Insurance business

·        Hydropower

·        Trading

·        Manufacturing & Processing

·        Investment

·        Mutual Funds

·        Corporate Debentures

·        Others (Telecommunication, Reinsurance)

Moreover, the NEPSE has classified companies into 4 categories as A, B, G & Z based on their paid up capital, duration of listing, profitability & credit rating.

Click Here to view the classification of the companies.

If you’re looking for new investment opportunities, we believe that following stocks listed in NEPSE are worth monitoring as they have shown promising performance in the past and could be a wise addition to your portfolio.  

Nabil Bank Limited

Nabil Bank limited(NABIL)is one of the leading banking companies of Nepal established in 1984 AD. Since then the bank has continuously been providing financial services across all demographic strata and geographical regions with 233 branches & 273 ATMs nationwide.

One of the standout features of Nabil Bank Limited is its excellent customer service. The bank commitment to dedicated customer service has contributed largely to its success as a trusted financial institution of Nepal.

The Bank has recently merged the business of Nepal Bangladesh Bank with the goal of creating a stronger & more competitive organization.

Here are the key indicators as of 29th December 2022. 

Market Capitalization           Rs. 192 billion

Paid up capital                           Rs. 22.83 billion                    

ROE                                              12.97%

Average dividend(3yrs)            34.42%

Price to Book value                   3.61

PE ratio                                    30.62

The company has Nabil investment Banking as a subsidiary that operates in Investment Banking & Merchant banking. Nabil bank also has a 25% investment in NADEP Laghubitta Bittiya Sanstha, a provider of microfinance services to small business and entrepreneurs.

NIC Asia Bank Limited

NIC Asia Bank(NICA) is another leading commercial bank in Nepal, serving over 2.5 million customers across the country. Established in 1998, the bank has grown significantly over the years and now boasts a network of over 356 branches and 471 ATMs nationwide.

The bank is known for its personalized service and innovative products, including a range of deposit and loan options tailored to meet the needs of its diverse customer base.

Here are the key indicators as of 29th December 2022.

Market Capitalization                                      Rs.83 billion

Paid up capital                                                Rs.11.56 billion

ROE                                                               21.03%

Average dividend(3yrs)                             6.67%*

Price to Book value                                        3.12

PE ratio                                                         11.88

NIC Asia has NIC Asia Capital Limited as a subsidiary that operates in Investment banking & Merchant banking providing services like Issue Management and Underwriting, Registrar to Share, Depository Participant and Portfolio Management. The bank also has a 57.75% investment in NIC Asia Laghubitta Bittiya Sanstha.

*Failing to meet Capital Adequacy requirements, the bank hasn’t distributed dividends for the last two financial years.

Muktinath Bikas Bank Limited

Muktinath Bikas Bank(MNBBL)was established in 2007 A.D. initially operating Banking business from the 3 districts, namely Syangha, Kaski & Tanahau of Western Nepal. Coming to this date, the Bank has a large footprint of 178 branch outlets with 22 ATMs (and still counting) spread across the country.

The customer friendly products, services and door-to-door facility are the major factors for the Bank’s popularity and success among the local people of the area. Serving over 950,000 happy customers, the bank has vision to be the most preferred robust Bank in Nepal while uplifting socio-economic status of people.

Here are the key indicators as of 29th December 2022.

Market Capitalization                                    25.5 billion

Paid up capital                                              5.65 billion

ROE                                                             17.17%

Average dividend(3yrs)                             16.07%

Price to Book value                                       3.03

PE ratio                                                         20.73

Muktinath Bikas Bank has Muktinath Capital Limited & Muktinath Krishi Company Limited as subsidiaries. Muktinath Capital is one of the pioneer Investment/merchant Banks of Nepal licensed by Securities Board of Nepal. Muktinath Krishi company is predominantly engaged in the business of agricultural products which includes the production, manufacturing, trading and marketing of the agro products.

Chhimek Laghubitta Bittiya Sanstha Limited

Chhimek Laghubitta Bittiya Sanstha Ltd.(CBBL) is a microfinance institution in Nepal that provides financial services to underserved communities in the country. The company was established in 2001 and is registered with the Nepal Rastra Bank as a "D" class financial institution. It operates through a network of 195 branches spread across 69 districts of the country and serves over 4,25,000 clients.

The company offers a range of financial products and services including microloans, micro insurance, and micro savings. It also provides financial literacy and training programs to its clients to help them manage their finances and grow their businesses.

Here are the key indicators as of 29th December 2022.

Market Capitalization                                    Rs. 26.40 billion           

Paid up capital                                              Rs.2.32 billion

ROE                                                              20.75%

Average dividend(3yrs)                                34.45%

Price to Book value                                       4.20        

PE ratio                                                20.06

The microfinance has been promoted by a non- profitable & non-governmental organization, Chhimek Samajsewa Sanstha.

Shikhar Insurance Company Limited

Established in 2004, Shikhar Insurance Company Limited(SICL) is a leading general insurance company in Nepal that offers a wide range of insurance products and services to its customers. With 100+ branches present all over Nepal and 600+ employee strength, Shikhar Insurance stands tall with the highest market share of 13% among General insurance companies in Nepal.

Shikhar Insurance offers a variety of insurance products including fire, marine, motor, aviation, engineering, agriculture & cattle insurance, micro insurance & miscellaneous. The company also provides financial planning services to its customers & is also involved in reinsurance business.

Here are the key indicators as of 29th December 2022.

Market Capitalization                                     Rs.19.93 billion

Paid up capital                                               Rs.2.29 billion

ROE                                                               20.75%

Average dividend(3yrs)                                 25.09%

Price to Book value                                       6.22

PE ratio                                                 36.95

Butwal Power Company Limited

Butwal Power Company Limited (BPCL) is an energy based company in Nepal that has a more than 5 decades long history of success, sustained growth & capacity building in the country.

BPCL is involved in production & distribution of electricity, consulting engineering services for Hydropower & Infrastructure projects, manufacturing & repair of equipment for power  plants.

Here are the key indicators as of 29th December 2022.

Market Capitalization                                    Rs.10.90 billion

Paid up capital                                              Rs.3.25 billion

ROE                                                              20.75%

Average dividend(3yrs)                                19.17%

Price to Book value                                      1.55

PE ratio                                                31.76

*As per Power Purchase Agreement with NEA, Himal Power Ltd. has transferred 50% ownership interest to NEA for nominal consideration of just Rs.1 in July,2020.

Bottlers Nepal (Terai) Limited

Bottlers Nepal Terai Limited(BNT) & its parent company Bottlers Nepal Limited are only the authorized bottler & supplier of The Coca-Cola Company and is responsible for the production, manufacture, sale, distribution and supply of soft drinks being carbonated non-alcoholic beverages and packaged drinking water under the brand names - Coca-Cola, Sprite, Fanta, Coke-Zero and Kinley.

The company was established in 1987 and has since become a key player in the non-alcoholic beverage industry in Nepal. It has a state-of-the-art manufacturing facility in Bharatpur and a network of distribution centers and sales offices throughout the Terai region.

Here are the key indicators as of 29th December 2022.

Market Capitalization                                        Rs.17.73 billion

Paid up capital                                                  Rs.12.1 million

ROE                                                                  18.99%

Average dividend(3yrs)                                   20%

Price to Book value                                           4.88

PE ratio                                                              13.99

Nepal Doorsanchar Company Limited (Nepal Telecom)

Nepal Telecom (NTC) is the largest telecommunication service provider in Nepal, with over 53% of market share in the telecommunication sector.

The company provides Wireless & Fixed Line Services. Wireless segments include GSM & CDMA services. Fixed Line services include landline, ADSL, FTTH & Lease line data connectivity services through fixed line network & broadband technology.

Here are the key indicators as of 29th December 2022.

Market Capitalization                                  Rs.163 billion

Paid up capital                                            Rs.18 billion

ROE                                                            8.75%

Average dividend(3yrs)                             40%

Price to Book value                                      1.68

PE ratio                                             18.40

Sanima Equity Fund

Sanima Equity Fund(SAEF) is a close end mutual fund scheme offered by Sanima Capital Limited in Nepal. It is an investment option that allows investors to pool their money together and invest in a diversified portfolio of stocks.

 The fund is managed by professional fund managers who aim to achieve long-term growth and generate returns for investors.

The Fund size of Sanima Equity fund is 1.30 billion, which is a relatively large size for a mutual fund in Nepal.

The Net Assets Value which is the value of Fund’s assets minus liabilities, divided by number of units outstanding, stands at 12.16 as on Mangsir end, 2078.

It is a 7-year scheme and since it’s allotment in December,2017 it has provided dividend of  total of 50% (10%, 7% & 33%) over the period of 3 years. 

It is important to notice that investment carries risk & no one can predict with certainty the performance of a particular Stock. It is always a good idea to go through research & consult with financial advisors before making any investment decisions.