Experts’ pick: Most sought after stocks at this moment are …

ShareSansar, July 9:

Nepal Stock Exchange Limited, the only stock exchange of the country, has breached 1,000 levels, and bull may be heading toward its peak.  Some good money could be made in the bull market if the investors are prudent. To help the investors to choose the right script, we bring to you experts’ pick for the week.

Check them out:

In the opinion of Tulsi Ram Dhakal, a noted Investor, currently the most sought-after scrips compared to others are mostly BFIs’ scrip.

Firstly, he goes for Standard Chartered Bank as performance wise the bank is doing really good and it has good return of almost 50 percent.

Next, he picks Siddhartha Bank as it has paid-up capital of 1 arba 81 crore, and profit he adds seeing all this why not to invest in this scrip.

Likewise, NIC Asia is also desirable scrip as the paid-up capital is 2.3 arba and has capacity to pay minimum of 30 percent bonus, according to him.

“Even Sanima bank is good scrip as it has good profits, it might be around 45 crore this year. Along with that Non Performing Loan (NPL) is 0.02 which is really good.”

He adds, “Agricultural Development Bank (ADBL) is also good scrip to invest. In current scenario this bank is frist-class as the return is 31 crore to 1 arba. Usually investors really underestimate this scrip as they have a misconception that the government bond is 9 arba whereas, it is 6 arba and it had 3 arba 20 crore paid-up capital. Last year the profits alone were 1 arba 72 crore so it will naturally increase this year. Moreover it has a capacity of distributing 50 percent bonus share so why not to invest in such a scrip. Investors are just worried as it is a government owned bank, but they do not need to worry as it has good returns.”

Another prominent investor Dillip Shrestha, believes that currently BFIs have a high scope in the market and he thinks that insurance and hydropower are bit risky at the moment.

He thinks the most sought after scrip is Agricultural Development Bank Limited. He is very much confident about this scrip, and has lavishly invested in it.

It may also be noted that ADBL posted one of the highest turnover and gain the market yesterday.

Shrestha says that both performance and assets wise ADBL is the most undervalued scrip hence he believes that it is the most desirable scrip among all for him. He thinks that it is the most risk free scrip with good future.

Then he likes Siddhartha Bank. Again performance wise, the bank is good and it has good networking. Moreover, currently the bank’s management and norms are very positive. Likewise its capital is less than Rs 2 arba which is less hence they need to distribute bonus to increase their capital base and for the business to grow. “As such I believe they will give 15 percent bonus and 10 percent cash dividend which is desirable for me.”

Thirdly, he prefers Everest bank as its paid-up capital is less.

Fourth desirable scrip, according to Shrestha, is Standard Chartered. “Earlier there was a rumor that the bank was about to close down hence the price of scrip decreased extensively; however they now agreed to comply with NRB,” he says.

“Now they are willing to increase their paid-up capital, for that the bank needs to distribute bonus as such I believe the risk is very less to invest in this bank as well,” he adds. “Lastly, I would say NIBL, as yet again it is much undervalued scrip with very good return.”      

Another noted investor Durga Upreti says, “For me the most sought after scrips at the moment is Rural Microfinance Development Centre (RMDC) as its growth is really impressive and it has a good future, though its NPL is also growing.”

Next he prefers ADBL as its Earning per Share (EPS) is growing.

“Likewise NTC’s scrip is also very desirable as the price is really undervalued and the company has a good scope. However the prices have not increased much which makes it even more desirable,” says Upreti.

Himalayan Bank’s scrip is also attractive as being one of the biggest commercial bank still its price is quite inexpensive compared to other similar commercial banks, according to him.

Lastly, Nabil Bank as the growth is really impressive and the profit for this fiscal year is estimated to be superb.

We talked with few brokers as well to know which scrips had high demand this week:

According to Dinesh Raj Sapkota, Broker # 33, ”Among the most demanded scrip the top one is NCC as the company has not meet the paid-up capital requirement sought by NRB.”

The market is expecting bonus/right share from its AGM, which has not been held till date. It is believed that the company is planning to hold joint AGM for the last as well as the current fiscal year in near future, with the main intention to raise the capital, he says.

Next, he say, Chilime is the most sought after scrip in the current scenario as performance wise the hydropower company is excellent. Moreover, the demand for hydropower is increasing, hence there is high demand for this scrip.

Civil Bank’s scrip is also on high demand as it is priced much lower than other commercial banks’ scrip, he adds. Nabil Bank’s promoter share is also on demand as it is a blue-chip company.   

Lastly, Prime Commercial Bank’s scrip is also on high demand as they are offering good dividends, he adds.

Chhatra Thapa of Shree Hari Securities (broker # 56) says that the most demanded scrip is Ridhi hydropower as the rate is less and the demand is very high for the company hydropower at the moment.

Biratlaxmi Bikash Bank is another most sought after scrip as its transaction has just resumed after being halted for a long time due to the merger process.

“Compared to similar development banks, the price of other development bank’s stocks has increased a lot. Now the transaction of this scrip has resumed at Rs 127, which the same price before its merger. Therefore the demand of this particular scrip is also increasing steadily,” he explains.

The NDEP development bank is also on a high demand due to similar reasons, according to him.

“Prudential Insurance Company’s scrip is also at a great demand as its paid-up is low. Hence it needs to issue more of right and bonus shares. Moreover it is undervalued compared to other insurance companies,” Thapa says.

Lastly, the demand for Sanima Mai Hydropower is also increasing, according to him.

“The price of all hydro companies is increasing of late, but it remains more or less stagnant for a long time, which makes it undervalued,” he explains.