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Shares to Buy in Nepal

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

SymbolNABIL
P/E Ratio21.32
Earnings Per Share (EPS)27.82
Paid-up Value100.00
Total Pidup value27,056,997,000.00
Listed Shares270,569,970.00

 

b) GBIME  Global IME Bank Limited 

SymbolGBIME
P/E Ratio10.04
Earnings Per Share (EPS)20.28
Paid up Value100.00
Total Pidup value35,771,060,000.00
Listed Shares357,710,600.00

 

3) Nepal Investment Mega Bank Limited 

SymbolNIMB
P/E Ratio13.83
Earnings Per Share (EPS)12.59 (FY:079-080, Q:4)
Paid-up Value100.00
Total Pidup value34,128,595,000.00
Listed Shares341,285,950.00

Development Banks

a) Muktinath Bikas Bank Ltd. 

SymbolMNBBL
P/E Ratio18.30
Earnings Per Share (EPS)21.24 (FY:079-080, Q:4)
Paid-up Value100.00
Total Pidup value6,420,900,273.00
Listed Shares64,209,002.73

 

b) Garima Bikas Bank Limited

SymbolGBBL
P/E Ratio15.99
Earnings Per Share (EPS)23.47 (FY:079-080, Q:4)
Paid-up Value100.00
Total Pidup value5,187,687,057.00
Listed Shares51,876,870.57

Life insurance

a) Nepal Life Insurance Co. Ltd.

SymbolNLIC
P/E Ratio0.00
Earnings Per Share (EPS)0.00 (FY:079-080, Q:4)
Paid-up Value100.00
Total Pidup value8,207,966,550.00
Listed Shares82,079,665.50

 

 b) Life Insurance Co. Nepal 

SymbolLICN
P/E Ratio0.00
Earnings Per Share (EPS)0.00 (FY:079-080, Q:4)
Paid-up Value100.00
Total Pidup value2,653,200,000.00
Listed Shares26,532,000.00

Non life insurance

a) Shikhar Insurance Co. Ltd. 

SymbolSICL
P/E Ratio49.57
Earnings Per Share (EPS)15.19 (FY:079-080, Q:4)
Paid-up Value100.00
Total Pidup value2,654,947,200.00
Listed Shares26,549,472.00

 

b) Himalayan Everest Insurance Limited 

SymbolHEI
P/E Ratio31.94
Earnings Per Share (EPS)17.41 (FY:079-080, Q:4)
Paid-up Value100.00
Total Pidup value2,301,535,000.00
Listed Shares23,015,350.00

 

Microfinance

a) Chhimek Laghubitta Bikas Bank Limited

SymbolCBBL
P/E Ratio25.53
Earnings Per Share (EPS)37.45 (FY:079-080, Q:4)
Paid-up Value100.00
Total Pidup value2,835,402,000.00
Listed Shares28,354,020.00

 

b) Nirdhan Utthan Laghubitta Bittiya Sanstha Limited 

SymbolNUBL
P/E Ratio14,552.50
Earnings Per Share (EPS)0.04 (FY:079-080, Q:4)
Paid-up Value100.00
Total Pidup value2,612,079,750.00
Listed Shares26,120,797.50

 

Hydropower

a) Chilime Hydropower Company Limited

SymbolCHCL
P/E Ratio50.17
Earnings Per Share (EPS)9.57 (FY:079-080, Q:4)
Paid-up Value100.00
Total Pidup value7,258,179,280.00
Listed Shares72,581,792.80

 

b) Butwal Power Company Limited

SymbolBPCL
P/E Ratio39.02
Earnings Per Share (EPS)7.84 (FY:079-080, Q:4)
Paid-up Value100.00
Total Pidup value3,409,065,000.00
Listed Shares34,090,650.00

 

Other important shares

Nepal Telecom (NTC)

SymbolNTC
P/E Ratio19.76
Earnings Per Share (EPS)43.36 (FY:079-080, Q:4)
% Dividend40.00 (FY:078-079)
Paid-up Value100.00
Total Pidup value18,000,000,000.00
Listed Shares180,000,000.00

 

 Himalayan Distillery Limited       

SymbolHDL
P/E Ratio71.81
Earnings Per Share (EPS)27.17 (FY:079-080, Q:4)
Paid-up Value100.00
Total Pidup value2,429,566,650.00
Listed Shares24,295,666.50

 

Unilever Nepal Limited

SymbolUNL
P/E Ratio17.61
Earnings Per Share (EPS)1,987.08 (FY:079-080, Q:4)
Paid-up Value100.00
Total Pidup value92,100,000.00
Listed Shares921,000.00

 

Chimmek Laghubitta Bittiya Sanstha Limited

SymbolCLBSL
P/E Ratio25.53
Earnings Per Share (EPS)37.45 (FY:079-080, Q:4)
Paid-up Value100.00
Total Pidup value2,835,402,000.00
Listed Shares28,354,020.00

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FAQs

Which is the best stock to buy in Nepal?

There best stock to buy in Nepal is NABIL since it provides an average dividend of more than 43% in the last 10 years.

What is IPO?

IPO (Initial Public Offering) is the process where companies offer their shares to the investors in the primary market.

What is the Share market?

The share market is the place where companies are allowed to raise money by presenting stock shares and corporate bonds which also provides the investors equal possibility to participate in the financial achievements of the company.

Is it better to invest in bank stocks?

Bank stock can be worth a long-term investment. The average dividend returns of bank stocks are comparatively higher than other stocks' average dividends.

Who holds the most shares in Nepal?

The government of Nepal holds most of the shares in Nepal. It has 58.66% of ownership of the stocks and shares in the share market.

How much does it cost to invest in a share?

There is no minimum or maximum amount required to invest in a share. You just need to have the amount that is enough to buy the quantity or unit that is fixed by the companies.

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.

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