5 Most Expensive Stocks Listed in NEPSE

Unofficially share trading in Nepal was started after Biratnagar Jute Mills and Nepal Bank Limited issued shares to the public in 1995 BS. Official share trading was started with the establishment of the Nepal Stock Exchange (NEPSE).  NEPSE was started in 2050 BS.

There are more than 250 companies are trading stock every day in NEPSE. Among 250 companies, here we discuss the top five most expensive stocks listed in NEPSE. There are 12 different categories under the company listed in NEPSE. Commercial banks, development banks, hydropower companies, finance companies have moderate value, however, life insurance, Microfinance companies have a relatively high prices and other remaining category company’s price is expensive.

Here, we discuss the five most expensive stocks listed in NEPSE. The manufacturing and products category is the most expensive stock category of Nepal.

1. Unilever Nepal Limited (UNL)

This company categorized under Manufacturing and Processing. UNL produces soap and Other Detergent Manufacturing industries. UNL has 351 corporate family connections. They started in Nepal in 1992. It is one of the most expensive stocks on the Nepal stock market.

S.N.HeadingPerformance
1Stock Symbol:UNL
2Market Price (11th June 2021):19,412.
3Earning per Share ( 3rd Quarter of 2077/78):465.58
4Price/Earning Ratio (3rd Quarter of 2077/78):41.69
5Book Value:2664.82
6Cash Dividend of last five Fiscal year:100%, 770%, 700%, 1270%, 1020%
7Bonus Dividend of last five Fiscal year:
8Total Listed Shares (Shares Outstanding):9,21,000.00

The stock is performing exceptionally well in the Nepalese stock market. All the performance indicators are quite strong. UNL is providing a very good return to their shareholders. In the last ten years, they provide cash dividends only. The current market price is too high. The investor needs to spend almost 200 thousand for 10 Kitta of shares. And, if they provide a 500% cash dividend next year the investor will get Rs 5000 with tax.

UNL is the best company for the initial investor but now they only provide cash and the current market price of the stock is too high. So, I recommend investors not buy this stock for the long run at the current market price until the company announces a bonus share.

2. Rastriya Beema Company Limited (RBCL)

It is the only non-life insurance company owned by the Government of Nepal. RBCL played a significant role in providing insurance services to various ministries and different agencies of the Nepal government, private sector, and general public for the last 54 years.

Highly Experience, government company, reinsurance with renowned international reinsures, safe and high return investment, strong financial indicators, strong legal framework, enough capital, and experienced manpower and management team are the major strength of Rashtriya Beema Company Limited.

S.N.HeadingPerformance
1Stock Symbol:RBCL
2Market Price (11th June 2021):22,500
3Earnings per Share ( 3rd Quarter of 2077/78):135.02
4Price/Earnings Ratio (3rd Quarter of 2077/78):166.64
5Book Value:1263.88
6Cash Dividend of last five Fiscal year:
7Bonus Dividend of last five Fiscal year:
8Total Listed Shares (Shares Outstanding):2,666,390.00

Recently, Beema Samiti made provision to make the paid-up-capital at least Rs 1 Arba to non-life insurance companies. In 2062/63 BS, RBCL was provided 6% of cash dividend and 114.27% of bonus share. The reason behind the sharp increment in price is investors assume that RBCL will provide bonus shares to reach their paid-up-capital provision.

All the financial indicators are good and this is one of the best non-life insurance companies in Nepal. But, there is no consistency in a dividend distribution to investors. So, I recommend not to buy the stock of this company because of the high market price and inconsistency in profit distribution to its shareholders.

3. Salt Trading Corporation (STC)

STC is listed in NEPSE under the trading category. The salt trading corporation is one of the biggest business organizations in Nepal. It was established with the practice of Public-Private Partnership (PPP) under the PPP act of the government of Nepal. It established in 1963 AD. STC supplies essential goods and services to the people at real market prices. The ownership structure of STC is 79:21 by private and government sectors respectively.

STC provides services to customers from 93 different offices by more than 1000 workers. STC is providing services all over Nepal.

S.N.HeadingPerformance
1Stock Symbol:STC
2Market Price (11th June 2021):10,802
3Earning per Share ( 3rd Quarter of 2077/78):26.35
4Price/Earning Ratio (3rd Quarter of 2077/78):409.94
5Book Value:784.66
6Cash Dividend of last five Fiscal year:5%, 10%, 10%, 10%, 5%
7Bonus Dividend of last five Fiscal year:20%, 25%, 25%, 25%, 20%
8Total Listed Shares (Shares Outstanding):1,920,246

STC itself engaged in incorporation activities such as import and export. Commodities like agricultural products, food products, construction products, paper, and other goods and services are the major products of STC for trade and business.

STC is providing good bonuses and cash returns to its shareholders. Although the return is moderate the market price of STC is too high. So, STC is overpriced. They have good financial indicators so I recommend buying this stock when the market is below Rs 3000.

4. Bottlers Nepal (TERAI) Limited (BNT)

BNT is the subsidiary company of Bottlers Nepal Limited located in Bharatpur, Chitwan. It produces Coca-Cola. It manufactures the products Returnable glass bottles and added a pet packaging line.

S.N.Heading Performance
1Stock Symbol:BNT
2Market Price (11th June 2021):10,781
3Earning per Share ( 3rd Quarter of 2077/78):384.94
4Price/Earning Ratio (3rd Quarter of 2077/78):28.01
5Book Value:2117.17
6Cash Dividend of last five Fiscal year:25%, 25%, 25%, 40%, 40%
7Bonus Dividend of last five Fiscal year:
8Total Listed Shares (Shares Outstanding):1,210,000

Although all the financial indicators are strong, I do not recommend buying this BNT stock at this market price. In the last 10 years, the company always provide a cash dividend. If you buy 100 shares at the current market price you have to pay Rs 1,078,100 and even if the company pays a 50% cash dividend you will get Rs 5000 which less than the normal bank interest rate.

So, BNT is good to buy if they announce the bonus share or if the market price goes down and reaches around Rs 2000.

5. Bishal Bazar Company Limited (BBC)

BBC listed under the Trading category in NEPSE. The market of BBC is increasing rapidly these days. BBC is one of the most expensive stocks in Nepal.

S.N.HeadingPerformance
1Stock Symbol:BBC
2Market Price (11th June 2021):6623
3Earning per Share ( 3rd Quarter of 2077/78):250.25
4Price/Earning Ratio (3rd Quarter of 2077/78):26.47
5Book Value:1685.32
6Cash Dividend of last five Fiscal year:
7Bonus Dividend of last five Fiscal year:
8Total Listed Shares (Shares Outstanding):500,000

All the financial indicator of BBC shows that they have good dividend distribution capacity. But, BBC has not provided any cash and bonus share to its shareholders. After reviewing the company and market, if BBC provides a return they will prefer to distribute the cash dividend. This stock is good to buy when the market price is below Rs 2000.

Conclusion:

In the above, we present the top five most expensive stocks listed in NEPSE. After reviewing all five companies, they all are overpriced in the market. So, do not buy those five stocks at this market price for the long term. And, I recommend all investors to learn and study about the company before investing. Citizen Investment Trust is also the expensive stock of Nepal.

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