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:
Table of Contents
Listed Hydropower Companies in Nepal stock Exchange:
| S.N. | Symbol | Company Name | Listed Shares | Market Price 1st May 2021 (RS) | Earning Per Share (EPS) | Cash Dividend (%) | Bonus Share (%) |
| 1 | AHPC | Arun Valley Hydropower Co. Ltd. | 15,723,591.00 | 436 | 6.05 | 0.26, 0.37 | 5%, 7% |
| 2 | BPCL | Butwal Power Company Limited | 29,522,702.00 | 545 | 20.71 | 15, 18, 18 | 10, 10, 10 |
| 3 | CHCL | Chillime Hydropower Company Limited | 62,807,304.80 | 719 | 10.94 | 5%, 10% | 20%, 10% |
| 4 | NHPC | National Hydropower Company Limited | 13,859,112.00 | 234 | -0.64 | – | – |
| 5 | SHPC | Sanima Mai Hydropower Ltd. | 28,084,100.00 | 460 | 16.15 | 0.53%, 5% | 10%, 10% |
| 6 | RHPC | Ridi Hydropower Development Company Ltd. | 5,855,580.00 | 371 | 4.88 | 0.26%, 0.26% | 5%, 5% |
| 7 | HURJA | Himalayan Urja Bikas Company Limited | 9,900,000.00 | 375 | -0.06 | – | – |
| 8 | AKPL | Arun Kabeli Power Limited | 15,856,500.00 | 434 | 17.09 | 0.29% | 5.71% |
| 9 | BARUN | Barun Hydropower Company Limited | 2,679,075.00 | 435 | 2.62 | 0.26 | 5.00 |
| 10 | API | Api Power Company Limited | 24,967,185.00 | 365 | 6.74 | 0.47%, 0.26% | 9.00%, 5.00% |
| 11 | NGPL | Ngadi Group Power Ltd | 5,891,102.00 | 361 | 6.36 | 10%, 0.53% | 10% |
| 12 | SJCL | Sanjen Jalavidhtut Company Limited | 32,850,000.00 | 458 | -0.86 | – | – |
| 13 | RHPL | Rasuwagadhi Hydropower Company Limited | 61,578,900.00 | 474 | -0.53 | – | – |
| 14 | UMHL | United Modi Hydropower Ltd. | 11,500,000.00 | 328 | 6.12 | 5.26%, 8.42% | |
| 15 | UPCL | Univesal Power Company Ltd. | 21,003,500.00 | 275 | 1.17 | – | – |
| 16 | SPDL | Synergy Power Development Limited. | 7,332,500.00 | 414 | 11.39 | 0.25% | 4.75% |
| 17 | KKHC | Khanikhola Hydropower Company Limited | 4,657,143.00 | 239 | -28.79 | – | – |
| 18 | HPPL | Himalayan Power Partner Ltd. | 10,654,170.00 | 413 | – | – | – |
| 19 | DHPL | Dibyashwori Hydropower Ltd. | 2,640,000.00 | -9.13 | |||
| 20 | MHNL | Mountain Hydro Nepal Limited. | 12,500,000.00 | 343 | 1.77 | – | – |
| 21 | CHL | Chhyangdi hydropower Ltd. | 2,976,750.00 | 4.78 | |||
| 22 | NHDL | Nepal Hydro Developers Ltd. | 2,990,000.00 | 461 | 7.90 | 0.79% | 15% |
| 23 | RADHI | Radhi Bidhut Company Ltd. | 4,735,565.00 | 1218 | 17.63 | – | 36% |
| 24 | KPCL | Kalika Power Company Ltd. | 6,000,000.00 | 455 | 13.80 | – | – |
| 25 | RRHP | Rairang Hydropower Development Company Ltd. | 56,000,000.00 | 414 | 9.17 | – | – |
| 26 | GHL | Ghalemdi Hydro Limited | 5,500,000.00 | 401 | -5.96 | – | – |
| 27 | PMHPL | Panchakanya Mai Hydropower Ltd. | 11,000,000.00 | 293 | -1.48 | – | – |
| 28 | GLH | Greenlife Hydropower Limited | 18,000,000.00 | 385 | – | – | — |
| 29 | AKJCL | Ankhu Khola Jalvidhut Company Limited | 8,000,000.00 | 262 | -4.63 | – | – |
| 30 | LEC | Liberty Energy Company Ltd. | 15,000,000.00 | 358 | -3.04 | – | – |
| 31 | SHEL | Singati Hydro Energy Limited | 14,500,000.00 | 424 | – | – | – |
| 32 | PPCL | Panchthar Power Company Ltd. | 9,625,000.00 | 358 | 4.09 | – | – |
| 33 | SSHL | Shiva Shree Hydropower Ltd. | 14,304,000.00 | 311 | – | – | – |
| 34 | JOSHI | Joshi Hydropower Development | 3,714,000.00 | 238 | – | – | – |
| 35 | UPPER | Upper Tamakoshi Hydropower Limited | 105,900,000.00 | 794 | -0.44 | – | – |
| 36 | UNHPL | Union Hydropower Limited | 7,500,000.00 | 278 | 1.59 | – | – |
| 37 | HDHPC | Himal Dolakha Hydropower Limited | 16,000,000.00 | 1.27 | – | – | |
| 38 | MEN | Mountaion Energy Nepal Limited | 19,680,270.00 | 777 | 3.39 | – | – |
| 39 | UMRH | United IDI Mardi RB Hydropower Limited | 4,200,000.00 | 488 | 5.69 | – | – |
| 40 | RURU | Ru RU Jalbidhut Pariyojana Limited. | 4,077,055.00 | 999 | 20.05 | – | – |
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.