Skip to main content

Top 10 Companies of Nepal by Market Capitalization

Market Capitalization is the number of shares outstanding multiplied by the current share price. It tells you the value of the company's stock in the share market. Normally, the market cap lets you compare similar businesses. 

Looking at the Standard & Poor's (S&P) index as of 17th March 2021, they have divided market caps into 

  • Small-Cap (S&P SmallCap 600): $750 million to $3.3 billion
  • Mid Cap (S&P MidCap 400): $3.3 billion to $11.8 billion
  • Large Cap (S&P 500): $11.8 billion or more

What does market cap tell us?

Large Cap: These are matured companies and major players in their sector. There might not be exponential growth in the short period but in long run, however, provide a consistent increase in share value and dividend payments.

Mid Cap: These are established companies that are supposed to have rapid growth. Most of the mid-companies are in the process of expansion and can offer better returns in both the short-term & long-term. But, inherently they carry more risk than large-cap companies.

Small-Cap: These are young companies with niche markets. These companies are supposed to be more sensitive to economic slowdowns as obviously being small has fewer resources. However, they are in need of cash and have a high potential to offer bonus share, right share and even, FPO (further public offerings).

What sort of Investment Strategy should one take based on the market cap?

People try to diversify their portfolio by having shares representing different market cap such that they can balance the risk and also, take care of opportunities in the market.

What about Nepal?

NEPSE market capitalization as of 9th September 2021 is NRs. 4,043,189.75 million. However, during our research, we couldn't find any standard ceiling to differentiate different market cap groups. The number of listed companies and the industry they represent is pretty limited. It actually limits the ability to utilize the general investment strategy based on the market cap as detailed in the above paragraph. 

However, it does give an indication as to bigger players in the market and their risk absorbing capacity in case of gloomy days. It is generally considered safe to have invest

Here are the top 10 companies of Nepal by market capitalization.



From the above table, you can see that these 10 companies represent a total of 30% of the market which is pretty significant. There are 4 commercial banks on the list with NABIL on the top, followed by Nepal Telecom and Nepal Reinsurance Company.

Note: The data has been picked up as of 9th September 2021 so there might have been few changes by the time this blog was published.



Labels:

Comments

Post a Comment

Most Viewed

Windfall Gain Tax (आकस्मिक लाभमा कर) per Nepal Income Tax Act

Nepal's Income Tax Act defines Windfall gain as a gain obtained by means of lottery, gift, prize, tips, share of earning in a game (जितौरी)  or any other gain acquired incidentally.  Let us explain by example what can potentially be Windfall Gain.  1) Let's say apple recently launched a iPhone 14 in Nepal. Part of such launch, company offered its customer who buys iPhone, an iPad for free. The market value of the iPhone is Rs. 214,000 and that of iPad is Rs. 189,000. In such case, customer who received Rs. 189,000 worth of iPad without any additional cost will be considered a prize hence, a windfall gain. 2) Recently DRS gaming won US$ 292,000 (approx. Rs 4 crore) for being runner's up in the grand finals of the PUBG Mobile Global Championship. Let's assume here that DRS gaming has not been registered as a company but simply represented by individuals. If I am not mistaken, there are 4 members in the team. So, each individual will have won Rs. 1 crore as share of earni...
Post a Comment
Read more

Process for Electronic Billing Software Registration with Inland Revenue Department Nepal

Process is straight forward, one is required to submit the online form along with the following documents: 1)       Copy of the Tax Clearance Certificate 2)       Copy of the Permanent Account Number (PAN) 3)       Copy of Company Registration Certificate 4)       User Manual for the software signed by company representative and stamped on each page 5)       Guarantee letter that Data Amendment or Edit (Manipulation) is not possible on the software 6)       Data Backup and Recovery System is available on the software 7)       System Architecture Detail 8)       Software Set Up file and Invoice Sample in Excel – 20 copies each in 20 pen drive 9)       Connection with Central Billing Management Software (CBMS) – API can be collected Service Branc...
17 comments
Read more

Tax Collection Agency codes for IRD Offices all over Nepal

Inland Revenue Department Nepal has published the agency codes that shall be used for the collection of direct and indirect taxes for the general public's information. Each code consists of 9 numbers. There are in total 59 agency codes currently in use. From these codes, we can classify that there are four types of IRD offices currently in operation. 1) Inland Revenue Office 2) Tax Payer Service Office 3) Large Tax Payer Service Office, and 4) Medium Tax Payer Service Office When shall you use these codes? It shall be used while choosing the agency where the tax should be deposited while completing the form for depositing the taxes. Agency Code list below: S.N. Agency Code Name Address 1 305011620 Inland Revenue Office Lahan 2 305030201 Tax Payer Service office Phidim 3 305030301 Tax Payer Service office Illam 4 305030401 Tax Payer Service office Khandbari 5 305030601 ...
1 comment
Read more