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PE ratio of all listed companies from all 11 sectors; 5 companies that never publish their report

Wed, Jan 16, 2019 12:33 PM on Exclusive, Highlight News, Stock Market,
-ShareSansar

-Aakriti Thakali

The PE ratio (price-earnings ratio) is the most controversial ratio of all. Mathematically, it's simple. Just divide the market price by the earnings per share (EPS) of the company. What makes it controversial is its interpretation. There are sufficient number of arguments supporting either the higher or the lower level of PE ratio as the better one.

Generally speaking, a PE ratio of 10 indicates that you are will to pay Rs. 10 for Re 1 earning of the company. Looking at this, the straight forward interpretation is a lower PE ratio is better. It seems as though, only a fool would like to pay higher for a unit of earning.

However, there is another school of thought that says that the PE ratio of a company becomes higher when investors are willing to pay higher for same amount of earning. And when investors are willing to do so, this doesn't mean that they are fool rather it connotes that there are other factors in play that makes the company valuable. One of the very important factor is the expectation of future growth. If the investors see that the company is going to have significant growth, irrespective of the EPS today it might give them better returns later. So in that anticipation they started buying and the prices start to rise. Then when prices rise, the PE ratio also becomes higher.

Plenty of studies have been done in order to identify the ideal level of PE ratio, but at the end of the day it's your money and thus the decision is at your discretion.

At present a total of 215 companies (including 13 mutual fund schemes) have been listed at the Nepal Stock Exchange (NEPSE). Through a bird's eye view, we can see that the shares are over-valued at NEPSE. But as we move closer, some sectors are more overvalued then the others just like some sector's prices are more volatile than the others.

So in the following article, we break down the PE ratio of companies according to the sector. The EPS is the annualized amount based on the report published on the first quarter of FY 2075/76. Similarly, in the quarterly reports, the prices used to determine the PE ratio are historical. So, here we'll be using the Last Traded Price (LTP) as on Poush 26, 2075.

COMMERCIAL BANK

Commercial banks are one of the sought-after sector when one is planning for long-term investment and stability. This is because of their relatively stable prices and faith of the general public. As you can see in the table below, except for Civil Bank all other bank's PE ratio is below the 20s. The overall average also comes at 13.06 times.

S.N. Company name Symbol EPS LTP (1-10-2019) P/E Ratio
1 Civil Bank CBL 5.95 163 27.39
2 Standard Chartered Bank SCB 31.66 608 19.20
3 Everest Bank EBL 31.56 536 16.98
4 Nabil Bank NABIL  51.36 835 16.26
5 Nepal SBI Bank SBI 24.35 387 15.89
6 Laxmi Bank LBL 14.74 225 15.26
7 Bank of Kathmandu BOKL 21.88 332 15.17
8 Himalayan Bank HBL 32.02 460 14.37
9 Nepal Investment Bank NIB 39.63 547 13.80
10 Sunrise Bank SRBL 16.26 216 13.28
11 Nepal Bangladesh Bank NBB 14.93 193 12.93
12 Kumari Bank KBL 19.71 253 12.84
13 Agricultural Development Bank ADBL 27.35 350 12.80
14 Century Commercial Bank CCBL 13.59 172 12.66
15 NMB Bank NMB 26.64 325 12.20
16 Sanima Bank SANIMA  25.45 307 12.06
17 Siddhartha Bank SBL 24.81 294 11.85
18 Prime Commercial Bank PCBL 28.98 334 11.53
19 Machhapuchchhre bank MBL 18.46 208 11.27
20 Global IME Bank GBIME 24.11 269 11.16
21 Mega Bank MEGA 15.44 171 11.08
22 NIC Asia Bank NICA 36.78 390 10.60
23 Janata Bank JBNL 16.1 168 10.43
24 Citizen Bank International CZBIL 21.26 214 10.07
25 Prabhu Bank PRVU 29.07 246 8.46
26 Nepal Bank NBL 39.92 307 7.69
27 NCC Bank NCCB 40.05 220 5.49
28 Rastriya Banijya Bank RBB 12.43    
  Average 13.06

DEVELOPMENT BANK

Similarly, the "B-class" banks graded by NRB and referred to as development banks are today as good as some commercial banks. If we look at the fundamental of some of the best performing development banks, they have outrun some commercial banks in number of parameters. This fact has also gained certain popularity of development banks among the investors.

As you can see in the table below, the range of PE ratio is wider for development banks than the commercial banks ranging from 1.81 times to 302.09 times. Similarly, the average PE ratio for this sector stands at 36.19 times.

S.N. Company name Symbol Earning Per Share annualized(Rs.) LTP (1-10-2019) P/E Ratio
1 Kamana Sewa Bikas Bank KSBBL 0.45 136 302.09
2 Karnali Development Bank KRBL 0.65 100 152.74
3 Saptakoshi Development Bank SKDBL 1.28 120 94.05
4 Green Development Bank GRDBL 1.77 110 62.24
5 Western Development Bank WDBL 4.79 231 48.24
6 Kankai Bikas bank KNBL 2.73 123 45.04
7 Shangrila Bikas Bank SADBL 3.08 138 44.82
8 Deva Bikas Bank DBBL 5.21 127 24.39
9 Tinau Development Bank TNBL 6.32 151 23.89
10 Kabeli Bikas Bank KEBL 9.07 203 22.39
11 Sahayogi Bikas Bank SBBLJ 10.12 204 20.16
12 Hamro Bikas Bank HAMRO 6.97 133 19.08
13 Mission Development Bank MIDBL 8.41 155 18.43
14 Kanchan Development Bank KADBL 9.48 174 18.36
15 Nepal Community Development Bank NCDB 7.35 121 16.47
16 Sindhu Bikas Bank SINDU 8.13 120 14.76
17 Miteri Development Bank MDB 20.51 295 14.38
18 Garima Bikas Bank GBBL 13.18 188 14.27
19 Om Development Bank ODBL 13.81 197 14.27
20 Jyoti Bikas Bank JBBL 9.78 138 14.11
21 Excel Development Bank EDBL 20.88 280 13.41
22 Purnima Bikas Bank PURBL 11.47 152 13.25
23 Gandaki Bikas Bank GDBL 14.95 190 12.71
24 Bhargav Bikas Bank BHBL 11.58 140 12.09
25 Kailash Bikas Bank KBBL 18.38 213 11.59
26 Lumbini Bikas Bank LBBL 14.93 171 11.45
27 Mahalaxmi Bikas Bank MLBL 14.85 168 11.31
28 Muktinath Bikas Bank MNBBL 30.93 345 11.16
30 Shine Resunga Development Bank SHINE 93.60 243 2.60
31 Corporate Development Bank CORBL 54.27 98 1.81
Average 36.19

FINANCE COMPANIES

Next comes Finance Companies, ranked as "C-class" companies. They have a narrower range of PE ratio than the development banks, but as you can see there are a few companies with negative EPS. Lalitpur Finance, City Express and Reliance Finance are at loss on the first quarter of this FY. The average PE ratio of the sector stands at 42.13 times.

S.N. Company Name Symbol Earning Per Share annualized(Rs.) LTP (1-10-2019) P/E ratio
1  Jebils Finance  JEFL 0.62 126 203.23
2  United Finance  UFL 0.91 170 186.81
3  Srijana Finance   SFFIL  4.69 220 46.91
4  Best Finance  BFC 2 80 40.00
5  Central Finance  CFCL 3.57 110 30.81
6  Multipurpose Finance  MPFL 5.73 173 30.19
7  Janaki Finance  JFL 6.99 170 24.32
8  Hathway Finance  HATH 5.03 121 24.06
9  Guheswori Merchant  Banking & Finance GMFIL 5.77 130 22.53
10  Goodwill Finance  GFCL 5.23 117 22.37
11  Manjushree Finance  MFIL 5.31 115 21.66
12  Gurkhas Finance  GUFL 5.71 100 17.51
13  Pokhara Finance  PFL 9.24 135 14.61
14  Shree Investment Finance SIFC 12.61 134 10.63
15  World Merchant Banking & Finance WMBF 10.78 92 8.53
16  ICFC Finance  ICFC 18.74 157 8.38
17  Progressive Finance   PROFL  33.95 123 3.62
18  Lalitpur Finance  LFC -19.48 133  
19  City Express Finance CEFL -13.83 109  
20  Reliance Finance  RLFL -8.25 117  
Average 42.13

*LFC, CEFL and RLFL are loss making companies, so are excluded.

HOTELS

Currently there are three listed hotels in NEPSE. Among the three, Soaltee Hotel's shares face value were issued at Rs. 10. However, the three companies stand at a regular interval in case of PE ratio. The average ratio for the sector is 38.05 times.

S.N Company Name Symbol Earnings Per Share (Annualized) LTP (1-10-2019) P/E Ratio
1  Soaltee Hotel Limited   SHL  3.49 204 58.45
2  Oriental Hotel   OHL  17.3 442 25.55
3  Taragoan Hotel  TRH 8.29 250 30.16
Average 38.05

HYDROPOWER

In case of Hydropower sector, the PE ratio is lesser than the above discussed sectors. As you can see in the table below, some of the companies' prices have gone even lower than the par value of Rs. 100.

After the market turned bear, hydropower is one of the sector that has suffered the most. In addition to that, the lack of regulatory body has also affected the investors' psychology. The average ratio for the sector stands at 18.37 times.

S.No Company Name Symbol EPS LTP (1-10-2019) P/E ratio
1 Ridi Hydropower Development Company Limited RHPC 1.17 101 86
2 Dibyashwari Hydropower Company DHPL 3.28 102 31
3 Arun Valley Hydropower Development Company Limited AHPC 3.56 105 29
4 Chhyangdi Hydropower Company Limited CHL 4.2 101 24
5 National Hydro Power Company Limited NHPC 2.96 70 24
6 Khani Khola Hydropower Company Limited KKHC 5.82 95 16
7 Barun Hydropower Company Limited BARUN 6.62 103 16
8 Radhi Bidyut Company Limited RADHI 10.81 165 15
9 Nepal Hydro Developer Limited NHDL 8.54 124 15
10 Api Power Company Limited API 10.99 153 14
11 Ngadi Group Power Limited NGPL 11 133 12
12 Ankhukhola Hydropower Company Limited AKJCL 8.64 94 11
13 Kalika Power Company Limited KPCL 11.87 100 8
14 Butwal Power Company Limited BPCL 53.5 369 7
15 Chilime Hydro power Company Limited CHCL 80.46 545 7
16 Synergy Power Development Limited SPDL 15.87 93 6
17 United Modi Hydropower Limited UMHL 22.67 122 5
18 Sanima Mai Hydropower Limited SHPC 56.69 232 4
19 Arun Kabeli Power Limited AKPL   184  
20 Himalayan Power Partner Limited HPPL   187  
21 Panchakanya Mai Hydropower Limited PMHPL   115  
22 Rairang Hydropower Development Company Limited. RRHP   103  
23 Joshi Hydropower Development Company JOSHI   274  
Average 18.37

*Arun Kabeli and Himalayan Power partner have don't started production yet. So they don't have EPS.

*Panchakanya mai hasn't produced the first quarter report yet.

*Rairang Hydropower and Joshi Hydropower have just been listed and they haven't published the quarterly report.

GENERAL INSURANCE

General Insurance, also known as non-life insurance, has come to rise recently. The non-life sector has projected more growth than the life insurance sector. In terms of market outlook, the share prices of Insurance companies are seen at the upper end and relatively volatile than the rest.

As you can see below, the average ratio of the sector is 40.24 times, which is highest of the all we've discussed above.

S.N. Company Name Symbol EPS LTP (1-10-2019) P/E Ratio
1 Rastriya Beema Company Limited RBCL 76.28 9495 124.48
2 Everest Insurance Company EIC 13.81 855 61.92
3 United Insurance Company UIC 14.79 789 53.34
4 Sagarmatha Insurance Company SIC 27.45 1340 48.82
5 Prabhu Insurance Company PRIN 12.13 460 37.91
6 Premier Insurance Company PIC 28.22 1030 36.50
7 Prudential Insurance Company PICL 20.72 713 34.41
8 Siddhartha Insurance Company SIL 21.65 655 30.26
9 Lumbini General Insurance LGIL 19.00 542 28.53
10 Neco Insurance Company NIL 19.30 540 27.98
11 NLG Insurance Company NLG 32.37 865 26.72
12 Himalayan General insurance Company HGI 15.77 405 25.68
13 IME General Insurance Company IGI 19.35 474 24.49
14 Shikhar Insurance Company SICL 39.99 935 23.38
15 Nepal Insurance Company NICL 29.00 559 19.27
16 Ajod Insurance Company AJOD 3.36    
17 Sanima Insurance Company SAICL 4.19    
18 General Insurance Company GICNL 2.99    
Average 40.24

*Ajod Insurance, Sanima Insurance and General Insurance haven't been listed yet.

LIFE INSURANCE

By now, we know that General Insurance sector has the highest average PE ratio, but that has changed just now. The life insurance sector with 7 listed companies has an average PE ratio of 63.80, which is the highest of all.

S.N. Company Name Symbol Earning Per Share (EPS) LTP (1-10-2019) P/E Ratio
1 Life Insurance Corporation Nepal LICN 14.65 1695 115.73
2 Asian Life Insurance Company ALICL 5.39 620 114.96
3 Nepal Life Insurance Company NLIC 18.57 1099 59.17
4 National Life Insurance Company NLICL 12.96 714 55.07
5 Gurans Life Insurance Company GLICL 16.42 713 43.42
6 Prime Life Insurance Company PLIC 15.25 503 32.99
7 Surya Life Insurance Company SLICL 22.36 565 25.27
8 Jyoti Life Insurance Company JLICL 7.84    
9 Sanima lIfe Insurance Company SALICL 6.39    
10 Union Life Insurance Company ULICL 9.76    
11 IME Life Insurance Company IMELICL 8.70    
12 Rastriya Beema Sanastha RBS 9.76 5100  
13 Citizen Life Insurance Company CLICL 5.02    
14 Prabhu Life Insurance Company PRLIL 3.43    
15 Reliable Nepal Life Insurance Company RENLICL 15.02    
16 Reliance Life Insurance Limited RLIL 4.83    
17 Sun Nepal Life Insurance Company SNLICL 9.07    
18 Metlife - American Life Insurance Company ALICO      
Average 63.80

*JLICL, SALICL, ULICL, IMELICL, CLICL, PRLIL, RENLICL, RLIL & SNLICL are not listed yet.

*The shares of Rastriya Beema Sansthan was last traded on 2015 AD at Rs 1500. So including it in average PE ratio would have distorted the figure a lot. So, we have not included RBS.

*Metlife Alico doesn't have a paid-p capital, so we can't determine the EPS.

MANUFACTURING & PROCESSING

A lot of efforts have been made to bring in real-sector companies into NEPSE, but still we have only 6 companies under the manufacturing & processing sector. Among the six, Nepal Lube Oil Company and Shree Ram Sugar Mills don't publish their quarterly reports due to lack of regulatory body. The average PE ratio of this sector stands at 11.79 times.

S.No Company Name Symbol EPS  LTP (1-10-2019)  P/E ratio
1 Himalayan Distillery Limited HDL 67               1,389.00 20.73
2 Bottlers Nepal (Balaju) BNL 552               1,693.00 3.07
3 Bottlers Nepal (Terai) BNT 909               6,579.00 7.24
4 Nepal Lube Oil NLO                     193.64  
5 Shree Ram Sugar Mills SRS                     132.00  
6 Unilever Nepal  UNL    1,452.00             23,402.00 16.12
Average 11.79

MICROFINANCE

With the second highest average PE ratio comes the microfinance sector. Even among the investors only involved in the primary market, getting allotted microfinance's share in an IPO is considered great.

The average PE ratio of the microfinance sector is 47.13 times.

S.N. Company Name Symbol EPS LTP (1-10-2019) P/E Ratio
1  NMB Microfinance Bittiya Sanstha NMBMF 2.88 1122 389.58
2  Kalika Laghubitta Bittiya Sanstha  KMCDB  4.97 985 198.19
3  Support Microfinance Bittiya Sanstha SMB 4.51 665 147.45
4  Civil Laghubitta Bittiya Sanstha  CLBSL  9.03 657 72.76
5  Suryodaya Laghubitta Bittiya Sanstha SLBS 20.55 1036 50.41
6  Samata Microfinance Bittiya Sanstha  SMATA  21.98 1100 50.05
7  RSDC Laghubitta Bittiya Sanstha RSDC 8.22 393 47.81
8  Janautthan Samudayic Laghubitta Bittiya Sanstha JSLBB 57.97 2620 45.20
9  Vijaya Laghubitta Bittiya Sanstha VLBS 15.84 698 44.07
10  Mirmire laghubitta Bittiya Sanstha  MMFDB  22.41 980 43.73
11  Mithila Laghubitta Bittiya Sanstha  MLBBL  21.53 939 43.61
12  Nerude Laghubitta Bittiya Sanstha NLBBL 11.48 466 40.59
13  Nagbeli Laghubitta Bittiya Sanstha NBBL 20.56 784 38.13
14  Swarojgar Laghubitta Bittiya Sanstha SLBBL 14.94 545 36.48
15  Global IME Laghubitta Bittiya Sanstha  GILB  31.73 1132 35.68
16  Mero Microfinance Bittiya Sanstha  MERO  33.33 1071 32.13
17  Mahila Sahayatra Bittiya Sanstha MSMBS 16.9 539 31.89
18  Unnati Microfinance Bittiya Sanstha  UMB  61.46 1860 30.26
19 First Microfinance Laghubitta Bittiya Sanstha  FMDBL  13.48 380 28.19
20  Summit Laghubitta Bittiya Sanstha SMFDB 25.39 710 27.96
21  Grameen Bikas Laghubitta Bittiya Sanstha GBLBS 17.76 435 24.49
22  Mahuli Samudayak Bittiya Sanstha MSLB 57.01 1310 22.98
23  Nadep  Laghubitta Bittiya Sanstha NADEP 34.77 796 22.89
24 Womi Microfinance Bittiya Sanstha  WOMI  43.01 965 22.44
25 National Microfinance Bittiya Sanstha   NMFBS  70.38 1570 22.31
26  Swadesi Laghubitta Bittiya Sanstha  SDESI  29.03 644 22.18
27  Kisan Microfinance Bittiya Sanstha KMFL 44.75 920 20.56
28 Laxmi Laghubitta Bittiya Sanstha  LLBS  38.22 780 20.41
29  Chautari Laghubitta Bittiya Sanstha CHLBS 11.9 238 20.00
30  Naya Nepal Laghubitta Bittiya Sanstha  NNLB 36.57 616 16.84
31  RMDC Laghubitta Bittiya Sanstha RMDC 35.51 554 15.60
32  Forward Microfinance Bittiya Sanstha FOWAD 107.18 1481 13.82
33  Sana Kisan Bikas Laghubitta Bittiya Sanstha SKBBL 77.89 1074 13.79
34  Chhimek Laghubitta Bittiya Sanstha CBBL 62.46 846 13.54
35  Nirdhan Utthan Bittiya Sanstha NUBL 60.31 770 12.77
36  Swabalamban Laghubitta Bittiya Sanstha SWBBL 68.1 860 12.63
37  Deprosc Laghubitta Bittiya Sanstha DDBL 47.48 580 12.22
38  Nepal Seva Laghubitta Bittiya Sanstha NSEWA -11.13 582  
39  Aarambha Microfinance Bittiya Sanstha AMFI -6.15 773  
40 Infinity Laghubitta Bittiya Sanstha  IMBSL  18.98    
41  Asha Laghubitta Bittiya Sanstha  ASHA  7.65    
42  Sabaiko Laghubitta Bittiya Sanstha  SLBSL  14.85    
43  Swabhiman microfinance Bittiya Sanstha SMBSL 35.2    
44  Samudayik Laghubitta Bittiya Sanstha SAMU 23.1    
45  Guras Laghubitta Bittiya Sanstha GLBSL -16.34    
46  NIC Asia Laghubitta Bittiya Sanstha NICALBS 16.16    
47  Manakamana Laghubitta Bittiya Sanstha MLBSL -16.07    
48 Ganapati Microfinance Bittiya Sanstha  GMBSL  28.23    
49  Sajilo Laghubitta Bittiya Sanstha SLBBSL 4.82    
50  Aarthik Samriddhi Laghubitta Bittiya Sanstha ARTHIK -20.63    
Average 47.13

*NSEWA & AMFI are loss making companies and therefore are excluded.

*IMBSL, ASHA, SLBSL, SMBSL. SAMU. GLBSL, NICALBS. MLBSL. GMBSL, SLBBSL & ARTHIK aren't listed in NEPSE yet but regularly publishing their quarterly report on timely basis.

OTHERS

In the others sector, there are only 4 listed companies as listed below. The average PE ratio of this sector stands at 13.20 times, which is very close to that of commercial banks'.

S.No Company Name Symbol EPS LTP (1-10-2019) P/E ratio
1 Citizen Investment Trust CIT 116 2275 20
2 Hydroelectricity Investment and Development Company HIDCL 10.95 152 14
3 Nepal Doorsanchar Company Limited NTC 119.75 732 6
  Nepal Film Development Company NFD      
Average 13.20

*The NFD doesn't publish its quarterly report.

TRADING

In the trading sector, there are two companies as listed below. However both the companies don't publish reports so the PE ratio can't be determined.

S.No Company Name Symbol EPS LTP (1-10-2019) P/E ratio
1 Bishal Bazar Company Limited BBC   1730  
  Salt Trading Corporation STC   456  
   

Overall Scenario

The below table shows the concise view of the sector-wise PE ratio. As already pointed in above sections, most of the companies (especially in trading sector) are not publishing their reports regularly, which brings their credibility in question. In addition to that, lack of regulation body may have prompted this situation.

S.N. Sector Average PE Ratio
1 Life Insurance 63.80
2 Microfinance 47.13
3 Finance  42.13
4 General Insurance 40.24
5 Hotel 38.05
6 Development Bank 36.19
7 Hydropower 18.37
8 Others 13.20
9 Commercial Bank 13.06
10 Manufacturing & processing 11.79
11 Trading  
Sector-wise average 32.40
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