Share refers to the percentage of the equity in a company or financial assets. Shares which are also known as units of stocks and commonly phrased as stocks are the part of large portions of units divided among the investors or buyers. Here we have summed up the ideas of the share market and the Best Shares to Buy in Nepal.
What is a share market?
Share market refers to the place where buyers and sellers deal together for trading the stocks. The buying and selling of any stock represent the ownership claims of the business. The stock market is considered a component of the free market economy.
Commonly, the share market is the place where the companies are allowed to raise the money by presenting stock shares and corporate bonds which also provides the investors equal possibility to participate in the financial achievements of the company. The value of a single common share is 100 NPR.
Primary Share market
The primary share market is the place where securities are created. It enables companies, governments, and other institutions to raise additional funds through the sale of debt and equity-related securities. These companies issue the securities to the public which is known as IPO.
The primary market securities may include notes, bills, government bonds, corporate bonds, and stock of companies.
Secondary Share Market
The secondary market is the trading ground where those secured shares that are issued in the primary share market are traded. Here the investors purchase securities and assets from other investors. Here, we trade the stocks that have already been issued by companies and corporations.
While we deal with the buying and selling of stocks and shares we must learn that the only stock exchange of Nepal is NEPSE.
NEPSE
Nepal Stock Exchange (NEPSE) is the only stock exchange for the secondary market in Nepal. It provides a platform for investors to buy and sell shares of publicly traded companies in various sectors of Nepal. You can trade on NEPSE after you sign up for a broker account.
It was founded in January 1994. The owner of the Nepal Stock Exchange is the government itself.
Top Shares to Buy in Nepal: Blue Chip Companies
Blue chip companies are those companies that have a great track of making money. Blue-chip companies are more reliable and safer to invest in. We have listed some top Shares to Buy in Nepal.
Commercial Banks
a) Nabil Bank Limited
| Symbol | NABIL |
| P/E Ratio | 21.32 |
| Earnings Per Share (EPS) | 27.82 |
| Paid-up Value | 100.00 |
| Total Pidup value | 27,056,997,000.00 |
| Listed Shares | 270,569,970.00 |
b) GBIME Global IME Bank Limited
| Symbol | GBIME |
| P/E Ratio | 10.04 |
| Earnings Per Share (EPS) | 20.28 |
| Paid up Value | 100.00 |
| Total Pidup value | 35,771,060,000.00 |
| Listed Shares | 357,710,600.00 |
3) Nepal Investment Mega Bank Limited
| Symbol | NIMB |
| P/E Ratio | 13.83 |
| Earnings Per Share (EPS) | 12.59 (FY:079-080, Q:4) |
| Paid-up Value | 100.00 |
| Total Pidup value | 34,128,595,000.00 |
| Listed Shares | 341,285,950.00 |
Development Banks
a) Muktinath Bikas Bank Ltd.
| Symbol | MNBBL |
| P/E Ratio | 18.30 |
| Earnings Per Share (EPS) | 21.24 (FY:079-080, Q:4) |
| Paid-up Value | 100.00 |
| Total Pidup value | 6,420,900,273.00 |
| Listed Shares | 64,209,002.73 |
b) Garima Bikas Bank Limited
| Symbol | GBBL |
| P/E Ratio | 15.99 |
| Earnings Per Share (EPS) | 23.47 (FY:079-080, Q:4) |
| Paid-up Value | 100.00 |
| Total Pidup value | 5,187,687,057.00 |
| Listed Shares | 51,876,870.57 |
Life insurance
a) Nepal Life Insurance Co. Ltd.
| Symbol | NLIC |
| P/E Ratio | 0.00 |
| Earnings Per Share (EPS) | 0.00 (FY:079-080, Q:4) |
| Paid-up Value | 100.00 |
| Total Pidup value | 8,207,966,550.00 |
| Listed Shares | 82,079,665.50 |
b) Life Insurance Co. Nepal
| Symbol | LICN |
| P/E Ratio | 0.00 |
| Earnings Per Share (EPS) | 0.00 (FY:079-080, Q:4) |
| Paid-up Value | 100.00 |
| Total Pidup value | 2,653,200,000.00 |
| Listed Shares | 26,532,000.00 |
Non life insurance
a) Shikhar Insurance Co. Ltd.
| Symbol | SICL |
| P/E Ratio | 49.57 |
| Earnings Per Share (EPS) | 15.19 (FY:079-080, Q:4) |
| Paid-up Value | 100.00 |
| Total Pidup value | 2,654,947,200.00 |
| Listed Shares | 26,549,472.00 |
b) Himalayan Everest Insurance Limited
| Symbol | HEI |
| P/E Ratio | 31.94 |
| Earnings Per Share (EPS) | 17.41 (FY:079-080, Q:4) |
| Paid-up Value | 100.00 |
| Total Pidup value | 2,301,535,000.00 |
| Listed Shares | 23,015,350.00 |
Microfinance
a) Chhimek Laghubitta Bikas Bank Limited
| Symbol | CBBL |
| P/E Ratio | 25.53 |
| Earnings Per Share (EPS) | 37.45 (FY:079-080, Q:4) |
| Paid-up Value | 100.00 |
| Total Pidup value | 2,835,402,000.00 |
| Listed Shares | 28,354,020.00 |
b) Nirdhan Utthan Laghubitta Bittiya Sanstha Limited
| Symbol | NUBL |
| P/E Ratio | 14,552.50 |
| Earnings Per Share (EPS) | 0.04 (FY:079-080, Q:4) |
| Paid-up Value | 100.00 |
| Total Pidup value | 2,612,079,750.00 |
| Listed Shares | 26,120,797.50 |
Hydropower
a) Chilime Hydropower Company Limited
| Symbol | CHCL |
| P/E Ratio | 50.17 |
| Earnings Per Share (EPS) | 9.57 (FY:079-080, Q:4) |
| Paid-up Value | 100.00 |
| Total Pidup value | 7,258,179,280.00 |
| Listed Shares | 72,581,792.80 |
b) Butwal Power Company Limited
| Symbol | BPCL |
| P/E Ratio | 39.02 |
| Earnings Per Share (EPS) | 7.84 (FY:079-080, Q:4) |
| Paid-up Value | 100.00 |
| Total Pidup value | 3,409,065,000.00 |
| Listed Shares | 34,090,650.00 |
Other important shares
Nepal Telecom (NTC)
| Symbol | NTC |
| P/E Ratio | 19.76 |
| Earnings Per Share (EPS) | 43.36 (FY:079-080, Q:4) |
| % Dividend | 40.00 (FY:078-079) |
| Paid-up Value | 100.00 |
| Total Pidup value | 18,000,000,000.00 |
| Listed Shares | 180,000,000.00 |
Himalayan Distillery Limited
| Symbol | HDL |
| P/E Ratio | 71.81 |
| Earnings Per Share (EPS) | 27.17 (FY:079-080, Q:4) |
| Paid-up Value | 100.00 |
| Total Pidup value | 2,429,566,650.00 |
| Listed Shares | 24,295,666.50 |
Unilever Nepal Limited
| Symbol | UNL |
| P/E Ratio | 17.61 |
| Earnings Per Share (EPS) | 1,987.08 (FY:079-080, Q:4) |
| Paid-up Value | 100.00 |
| Total Pidup value | 92,100,000.00 |
| Listed Shares | 921,000.00 |
Chimmek Laghubitta Bittiya Sanstha Limited
| Symbol | CLBSL |
| P/E Ratio | 25.53 |
| Earnings Per Share (EPS) | 37.45 (FY:079-080, Q:4) |
| Paid-up Value | 100.00 |
| Total Pidup value | 2,835,402,000.00 |
| Listed Shares | 28,354,020.00 |
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FAQs
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Conclusion:
Hence, entering the stock market with little understanding can be risky. Make sure you’ve got an idea of the common terms used in share markets to develop a place in the share market world. The stocks are intended for long-term investment. you must understand the fundamentals of the investment to gain success in the share market. However, we have made it easier for you by listing the best shares to buy in Nepal.