Investment in Hydro company’s stock in Nepal

As per the report of ShareSanasr, there are more than 40 companies are listed in Nepal. More than 10 companies are in pipeline to issue the Initial Public Offering (IPO). Investment in hydro company’s stock in Nepal is risky as well.

Many hydro companies already suppose to start their electricity production, but because of some issue, they have not finished their project yet. Currently, the total capacity of hydro companies is around 1100 Megawatt(MW), but Nepal Electricity Authority (NEA) announced that more than 750 MW will be added to the national grid within this fiscal year.

As per the NEPSE report of 1st June 2021, almost all stock prices of hydro companies are increasing rapidly. Even though some companies have negative Earning Per Share and Net Worth, their market value is more than good commercial bank’s (fundamentally and technically) stock price.

Recently, many hydro companies are issuing the right share to their existing shareholders because of that as well the price is getting higher and higher. Although investment in hydro company’s stock in Nepal is risky, there is good company as well who are giving good dividend and bonus share to their shareholders. Here is a list of companies that are listed in NEPSE:

Listed Hydropower Companies in Nepal stock Exchange:

S.N.SymbolCompany NameListed SharesMarket Price 1st May 2021 (RS)Earning Per Share (EPS)Cash Dividend (%)Bonus Share (%)
1AHPCArun Valley Hydropower Co. Ltd.15,723,591.004366.050.26, 0.375%, 7%
2BPCLButwal Power Company Limited29,522,702.0054520.7115, 18, 1810, 10, 10
3CHCLChillime Hydropower Company Limited62,807,304.8071910.945%, 10%20%, 10%
4NHPCNational Hydropower Company Limited13,859,112.00234-0.64
5SHPCSanima Mai Hydropower Ltd.28,084,100.0046016.150.53%, 5%10%, 10%
6RHPCRidi Hydropower Development Company Ltd.5,855,580.003714.880.26%, 0.26%5%, 5%
7HURJAHimalayan Urja Bikas Company Limited9,900,000.00375-0.06
8AKPLArun Kabeli Power Limited15,856,500.0043417.090.29%5.71%
9BARUNBarun Hydropower Company Limited2,679,075.004352.620.265.00
10APIApi Power Company Limited24,967,185.003656.740.47%, 0.26%9.00%, 5.00%
11NGPLNgadi Group Power Ltd5,891,102.003616.3610%, 0.53%10%
12SJCLSanjen Jalavidhtut Company Limited32,850,000.00458-0.86
13RHPLRasuwagadhi Hydropower Company Limited61,578,900.00  474-0.53
14UMHLUnited Modi Hydropower Ltd.11,500,000.003286.125.26%, 8.42% 
15UPCLUnivesal Power Company Ltd.21,003,500.002751.17
16SPDLSynergy Power Development Limited.7,332,500.0041411.390.25%4.75%
17KKHCKhanikhola Hydropower Company Limited4,657,143.00239-28.79
18HPPLHimalayan Power Partner Ltd.10,654,170.00413
19DHPLDibyashwori Hydropower Ltd.2,640,000.00 -9.13  
20MHNLMountain Hydro Nepal Limited.12,500,000.003431.77
21CHLChhyangdi hydropower Ltd.2,976,750.00 4.78  
22NHDLNepal Hydro Developers Ltd.2,990,000.004617.900.79%15%
23RADHIRadhi Bidhut Company Ltd.4,735,565.00121817.6336%
24KPCLKalika Power Company Ltd.6,000,000.0045513.80
25RRHPRairang Hydropower Development Company Ltd.56,000,000.004149.17
26GHLGhalemdi Hydro Limited5,500,000.00401-5.96
27PMHPLPanchakanya Mai Hydropower Ltd.11,000,000.00293-1.48
28GLHGreenlife Hydropower Limited18,000,000.00385
29AKJCLAnkhu Khola Jalvidhut Company Limited8,000,000.00262-4.63
30LECLiberty Energy Company Ltd.15,000,000.00358-3.04
31SHELSingati Hydro Energy Limited14,500,000.00424
32PPCLPanchthar Power Company Ltd.9,625,000.003584.09
33SSHLShiva Shree Hydropower Ltd.14,304,000.00311
34JOSHIJoshi Hydropower Development3,714,000.00238
35UPPERUpper Tamakoshi Hydropower Limited105,900,000.00794-0.44
36UNHPLUnion Hydropower Limited7,500,000.002781.59
37HDHPCHimal Dolakha Hydropower Limited16,000,000.00 1.27
38MENMountaion Energy Nepal Limited19,680,270.007773.39
39UMRHUnited IDI Mardi RB Hydropower Limited4,200,000.004885.69
40RURURu RU Jalbidhut Pariyojana Limited.4,077,055.0099920.05

In the above table, there are 42 hydropower companies. Investment in hydro company’s stock in Nepal is increasing rapidly from different investment companies and the general public. Here, we divided the hydro companies into three different types as per the stock investor’s perspective which are:

1. Good For Investment:

There are very few hydro companies that are good for the long term. All forty-two hydro’s stock is overvalued in NEPSE. Although the BPCL, CHCL, RURU highlighted company is good for the long term, currently they are also overvalued in the market. So, these stocks can provide the shareholders return every year.

2. Moderate Stocks:

The NHDL, RADHI, NGPL, API, AHPC company’s stock in the above table are might be good for short-term trading but they will not provide a good return in near future. Because of the bullish market, all stocks are overvalued otherwise a couple of them were less than Rs. 150 a year ago.

3. Risky Stocks:

All the remaining companies except in (1) and (2) highlighted companies are the risky stocks in the current scenario. Upper Tamakoshi is a big project and it is going to finish soon but still, they will take 2-3 years to provide a good return to investors. Additionally, there are many companies that have -50 EPS and they are in great loss and they can not provide a dividend to shareholders at least for the coming 5 years but still, their company’s stock price is more than Rs 200. 

Conclusion:

Currently many hydro companies are issued their right share to their existing shareholders to pay the bank loan. As well as, all the other sector is almost close because of corona pandemic so many investors put their money on stock price and new investor normally purchase stock which has a lower price, so the demand and price of the hydro stock are increased.

As well as, Many investors are saying that Insider information, share cornering are also happening in the Nepalese stock market. So, all the new investors should conscious when they buy the stock. There are many websites and many videos which give information about different companies. So be informative and try to filter the information correctly.

Furthermore, the new investor should look for the long term because short-term trading is highly risky so if you see for the long term and select a good company that has good fundamental statistics then you will get a good return in the future.

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