Nepalese Investor

Best Blue Chip Company In Nepal (NEPSE)

Blue Chip Company in Nepal - Nepalese Investor
Blue Chip Company in Nepal.

Here we have listed and explained about the best blue chip companies in Nepal that are listed in Nepal Stock Exchange (NEPSE). Most of the investors considers them as the best shares to buy in Nepal.

Blue Chip Companies are considered to be best for long term investment in share market. Globally companies like Coca-Cola, Walmart, General Electric, Disney, Apple, Nike and IBM are considered to be blue chip.

Definition: Blue Chip Company are less volatile, having large market capitalization with little to no debt, safer investment option for investors. These companies are market leaders in their respective field, have dependable business model, stable and reliable financial growth and history of delivering high returns.

Blue Chip Companies have good management team with clear division of responsibilities and good corporate governance. These companies are considered to protect investors wealth against the inflation. Blue Chip Company in Nepal can be identified based on several factors, such as:

  • Consistent Annual Revenue
  • Stable Debt-to-Equity Ratio
  • High Return on Equity
  • High Return on Asset
  • Lower Price Earning Ratio
  • No Debt
  • Consistent Dividend History

Share price of these companies are often higher and falls among top traded in stock exchange due to good reputation among Shareholders.

Best Blue Chip Company in Nepal

Here is the list of sector wise best blue chip company in Nepal that are listed in Nepal Stock Exchange (NEPSE) and traded on regular basis.

A. Blue Chip Bank/Development Bank in Nepal

Following are the blue chip banks & development banks in Nepal.

1. Nabil Bank (NABIL)

Considered as the top blue chip company in Nepal from banking sector, Nabil Bank has distributed an average return of 56.83% within last fifteen fiscal years. The company has market capitalization of NPR 173.53 Billion with strong customer base and presence all over Nepal.

2. Standard Chartered Bank Nepal Limited (SCB)

Standard Chartered Bank has distributed an average of 41% return to investors in Nepal. The company has always maintained sound financial status, average to low P/E ratio with high earning per share.

3. Muktinath Bikas Bank (MNBBL)

Muktinath Bikas Bank is the leading blue chip development bank of Nepal with largest paid-up capital and market capitalization. The company has average returns of 27% per year to shareholders. Fastest growth of company, sound financial status, consistent dividend history, market presence makes it the blue chip company in Nepal.

B. Blue Chip Micro-Finance Company in Nepal

Following are the blue chip micro-finance companies in Nepal.

4. Chhimek Laghubitta Bittiya Sanstha Limited

Chhimek Laghubitta is here because of the result it has given and the current market position it has. This blue chip company in Nepal has maintained strong financial position, good dividend history, good business expansion and reputation among investors.

5. Nirdhan Utthan Laghubitta Bittiya Sanstha Limited

NIrdhan Utthan Laghubitta is another micro-finance company in the list of blue chip shares of Nepal. The company has maintained all factors that we look at to identify blue chip stocks.

C. Blue Chip Life Insurance Company in Nepal

Following are the blue chip life insurance companies in Nepal.

6. Nepal Life Insurance Company Limited (NLIC)

Nepal Life Insurance Company is the leading life insurance company of Nepal, the company has strong market presence and largest market share with 15,22,481 conventional policies having total premium income of Rs.17,707 Crore and 15,35,335 Foreign Expatriate policies having premium income of Rs.416.98 Crore. 

7. Life Insurance Corporation Nepal (LICN)

Life Insurance Corporation Nepal is the blue chip company from insurance sector. With average dividend of 32% per year, strong management team and financial position, Life Insurance Corporation Nepal is considered as one of the blue chip stock of Nepal.

D. Blue Chip Non Life Insurance Company in Nepal

Following are the blue chip non life insurance companies in Nepal.

8. Shikhar Insurance Company Limited (SICL)

Shikhar Insurance is the leading non life insurance company of Nepal with strong market presence, management team and financial position. The company has also provided consistent returns to investors.

9. Sagarmatha Insurance Company Limited (SIC)

Sagarmatha Insurance Company is considered to be another blue chip stock form non life insurance sector. The company has good reputation among investors for higher returns and financial stability.

E. Blue Chip Hydropower Company in Nepal

Following are the blue chip hydropower companies in Nepal.

10. Chilime Hydropower Company Limited (CHCL)

Chilime Hydropower is the blue chip company from hydropower sector, the company has managed to invest in number of projects in Nepal, maintain financial stability and provdide good returns to investors.

11. Butwal Power Company Limited (BPCL)

Butwal Power Company is also considered to be blue chip stock because of its market reputation for good dividend to shareholders. The company has also maintained strong financial position and has started numerous new projects.

F. Other Blue Chip Company in Nepal

Following are the blue chip companies from other sectors in Nepal.

12. Unilever Nepal Limited (UNL)

Unilever Nepal’s dividend history can’t be matched by other companies listed in NEPSE. With an average dividend of 770% within last ten years, strong market presence and customer base, excellent financial position, this multi-national company is surely the best blue chip company in Nepal. The stock price of Unilever Nepal is the most expensive and trades at 180 day average of NPR 18,100 per share.

13. Salt Trading Corporation (STC)

Salt trading has a monopoly business in Nepal with strong financial position and high earnings. The company has satisfied investors with very good returns. It can be considered as blue chip company because of its financial performance, lack of competition, dividend history and market presence.

14. Nepal Telecom (NTC)

Nepal Telecom is the blue chip company from telecom sector with average returns of more than 40% per year to shareholders. The company has largest market share in the country with maximum shares held by Government of Nepal. You can easily trust invest in this company because of the future potential growth it has.

15. Citizen Investment Trust (CIT)

Citizen Investment Trust is also considered as blue chip stock by Nepalese Investors. CIT has satisfied its investors with higher dividend, strong financial position and excellent management team.

In the above data, We have mentioned 15 fifteen blue chip company operating in Nepal from different sector like banking, micro-finance, life insurance, non life insurance, hydropower and other sectors. They are here on the basis of market capitalization, financial position, market share and returns to share holders.

Conclusion

Blue Chip Companies in Nepal are considered to be the best investment option among new investors. Share price of these companies are often higher, considered to protect wealth during inflation.

Market price of these companies when compared to other doesn’t fluctuate at great extent during bear and bull market. So, often new investors considers then as the best shares to buy in Nepal as of 2022.

Soaltee Hotel, Deprosc Laghubitta, Everest Bank are also considered to be some of the other best blue chip company of Nepal. But before investing, proper research of current financial status of company, potential future growth is necessary. So, we suggest you to calculate risk, learn about the company, management team and several other things before investing.

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