Share-price of 51 companies found overvalued; SEBON points irregularities in trading
Kathmandu / June 15: The Securities Board of Nepal (SEBON) on Tuesday said that the share values of 51 companies engaging in ‘irregular activities’ have been found to be overvalued.
SEBON on Tuesday published the list of companies trading in Nepal Stock Exchange (NEPSE), the sole secondary market of the country, based on abnormalities in percentage gain of the share price in contrast to their financial health.
It was observed that investors that were injecting large amounts took to manipulation of market thereby unnaturally increasing share prices.The regulatory board listed 51 risky companies that had, in the last one year, marked an increase of over 300 per cent in their share price, P/E Ratio over 100, earnings per share (EPS) in negative and net worth per share less than initial price and the current financial situation.
The list also contains the closing price of the companies as of Shrawan 12, 2073; closing price as of Baisakh 30, 2077, closing price as of Jestha 31, 2078 as well as EPS, PE Ratio and net worth of the shares.
The board also found that there was an indication of insider trading, circular trading and cornering among other securities’ related anomalies following which the board has initiated a detailed study of the issues in those companies, SEBON said.
The board has published the list of the companies so that the investors could make an informed decision regarding their investment in the share market.The statement also thanked all the investors for their enthusiasm in the online trading of the stocks even during this pandemic.
The board also urged all investors to carry out a detailed investigation of the companies’ financial situation and other indexes before investing in those companies instead making decisions based on rumours.The board will always work in the protection of the investors’ rights and will publish various information and news for the same, the regulatory board said in the statement.
The companies listed by SEBON:
1) Corporate Development Bank Limited (CORBL)
2) Narayani Development Bank Limited
3) Gurkhas Finance Ltd. (GUFL)
4) Multipurpose Finance Company Limited (MPFL)
5) Nepal Finance Ltd. (NFS)
6) Samriddhi Finance Company Limited (SFCL)
7) Chandragiri Hills Limited (CGH)
8) Soaltee Hotel Limited (SHL)
9) Ankhu Khola Jalvidhyut Company Ltd. (AKJCL)
10) Arun Valley Hydropower Development Co. Ltd. (AHPC)
11) Barun Hydropower Co. Ltd. (BARUN)
12) Chhyangdi Hydropower Ltd. (CHL)
13) Dibyashwori Hydropower Ltd. (DHPL)
14) Himalaya Urja Bikas Company Limited
15) Khanikhola Hydropower Co. Ltd. (KKHC)
16) Liberty Energy Company Limited (LEC)
17) Mountain Energy Nepal Limited (MEN)
18) Mountain Hydro Nepal Limited (MHNL)
19) Panchakanya Mai Hydropower Ltd. (PMHPL)
20) Radhi Bidyut Company Ltd. (RADHI)
21) Rairang Hydropower Development Company Ltd. (RRHP)
22) RASUWAGADHI HYDROPOWER COMPANY LIMITED (RHPL)
23) Ridi Hydropower Development Company Ltd. (RHPC)
24) SANJEN JALAVIDHYUT COMPANY LIMITED (SJCL)
25) Synergy Power Development Ltd. (SPDL)
26) Union Hydropower Limited (UNHPL)
27) UNIVERSAL POWER COMPANY LTD
28) Upper Tamakoshi Hydropower Ltd (UPPER)
29) Asian Life Insurance Co. Limited (ALICL)
30) Gurans Life Insurance Company Ltd. (GLICL)
31) Life Insurance Co. Nepal (LICN)
32) Nepal Life Insurance Co. Ltd. (NLIC)
33) Reliance Life Insurance Limited (RLI)
34) Himalayan Distillery Limited (HDL)
35) SHIVAM CEMENTS LTD (SHIVM)
36) Ghodighoda Laghubitta Bittiya Sanstha Ltd.
37) Mahila Lagubitta Bittiya Sanstha Limited (MLBSL)
38) National Hydropower Company Ltd. (NHPC)
39) Panchathar Power Company Ltd. (PPCL)
40) Ajod Insurance Limited (AIL)
41) IME General Insurance Ltd. (IGI)
42) Rastriya Beema Company Limited (RBCL)
43) Sanima General Insurance Limited (SGI)
44) United Insurance Co. (Nepal) Ltd. (UIC)
45) Citizen Investment Trust (CIT)
46) Hydroelectricity Investment and Development Company Ltd (HIDCL)
47) Nepal Infrastructure Bank Limited (NIFRA)
48) Nepal Reinsurance Company Limited (NRIC)
49) NRN Infrastructure and Development Limited (NRN)
50) Bishal Bazar Company Limited (BBC)
51) Salt Trading Trading (STC)