These days, the share market is gaining popularity in Nepal. Although it has been many years since the Nepal Stock Exchange (NEPSE) started to share trading, the active engagement of a huge population has recently started. Dematerialization of Share (DEMAT), Trading Management System (TMS), and MeroShare have made the share application, and buying-selling process more easier than before. Thus, people are searching for the blue chip company in Nepal for the profitable investment. This article has presented the top 10 such companies.
What is Blue Chip Company ?
A blue chip company is typically a well-established, reputed, and financially stable company with a long history and trustworthiness. These companies are often leaders in their respective industries. For example; if ABC Bank is blue chip company, it may be the leader company in the commercial banking sector.
These companies have strong financials, market capitalization, extensive operations, and competitive advantage compared to the other companies in the same sector. Investors chose blue chip company because it is relatively save investment option due to their good history and future.
Following are the major features of blue chip companies:
- Well-recognized,
- Strong financials with stale revenue and profitability,
- Market leadership and dominant player in their industry,
- Diversification on business operation,
- History of regular dividend payment,
- Strong and trustworthy corporate governance.
Top 10 Blue Chip Company in Nepal
Following are the top 10 companies that are considered as blue chip company in the present scenario in Nepal:
Nabil Bank Limited (NABIL)
Nabil Bank Limited is one of the blue chip company in Nepal from banking sector. It is one of the largest commercial banks in Nepal. It was established in 1984 and has since grown to become a prominent player in the country’s banking industry. It is well known for its financial stability and high dividend payment history.
Related Article: NEPSE Technical Analysis – Trend Analysis, RSI, MACD (2023)
Dividend History :
| Bonus % | Cash % | Total | Fiscal Year |
|---|---|---|---|
| 18.50 % | 11.5 % | 30 % | 2078/2079 |
| 33.6 % | 4.4 % | 38 % | 2077/2078 |
| 33.5 % | 1.76 % | 35.26 % | 2076/2077 |
| 12 % | 22 % | 34 % | 2075/2076 |
| 12 % | 22 % | 34 % | 2074/2075 |
| 30 % | 18 % | 48 % | 2073/2074 |
| 30 % | 15 % | 45 % | 2072/2073 |
| 30 % | 6.84 % | 36.84 % | 2071/2072 |
| 20 % | 45 % | 65 % | 2070/2071 |
| 25 % | 40 % | 65 % | 2069/2070 |
Sana Kisan Bikas Laghubitta Bittiya sanstha Limited. (SKBBL)
SKBBL is one of the Blue Chip Company in Nepal which represents the microfinance sector in NEPSE. This is a wholesale microfinance so that its earning power is rarely affected by other economic conditions. It focuses on providing microfinance services to rural and agricultural communities in Nepal.
It has a very consistent dividend payout from many years as follows:
Dividend History:
| Bonus % | Cash % | Total | Fiscal Year |
|---|---|---|---|
| 26 % | 1.37 % | 27.37 % | 2078/2079 |
| 25 % | 1.32 % | 26.32 % | 2077/2078 |
| 25 % | 1.32 % | 26.32 % | 2076/2077 |
| 27.25 % | 1.43 % | 28.68 % | 2075/2076 |
| 25 % | 1.31 % | 26.31 % | 2074/2075 |
| 25 % | 1.32 % | 26.32 % | 2073/2074 |
| 25 % | 1.31 % | 26.31 % | 2072/2073 |
| 25 % | 1.31 % | 26.31 % | 2071/2072 |
| 0 % | 15.78 % | 15.78 % | 2070/2071 |
| 15 % | 11.31 % | 26.31 % | 2069/2070 |
Chhimek Laghubitta Bittiya Sanstha Limited (CBBL)
More than 25% shares are owned by Nabil Bank, Global IME Bank, and Himalayan Bank. It is well-known for its consistent financial indicators and regular dividend payment to the shareholders.
| Bonus % | Cash % | Total | Fiscal Year |
|---|---|---|---|
| 22 % | 3.26 % | 25.26 % | 2078/2079 |
| 27 % | 3 % | 30 % | 2077/2078 |
| 22 % | 7 % | 29 % | 2076/2077 |
| 27.11 % | 17.21 % | 44.32 % | 2075/2076 |
| 18 % | 22 % | 40 % | 2074/2075 |
| 19.89 % | 25.11 % | 45 % | 2073/2074 |
| 40 % | 12.7 % | 52.7 % | 2072/2073 |
| 40 % | 12.7 % | 52.7 % | 2071/2072 |
| 35 % | 10 % | 45 % | 2070/2071 |
| 33.23 % | 15 % | 48.23 % | 2069/2070 |
Soaltee Hotel Limited (SHL)
Soltee Hotel is one of the blue chip company in Nepal from Hotel and Tourism sector. It is a well-known hotel located in Nepal. It is a luxury hotel situated in the heart of Kathmandu. It is leading company among hotel and tourism sector in NEPSE. Before investing in this stock, investors should know that its’ par value is Rs. 10. It’s dividend history is as follows:
Dividend History:
| Bonus % | Cash % | Total | Fiscal Year |
|---|---|---|---|
| 5 % | 21.32 % | 26.32 % | 2078/2079 |
| 15 % | 11.31 % | 26.31 % | 2075/2076 |
| 10 % | 16.31 % | 26.31 % | 2074/2075 |
| 15 % | 6.05 % | 21.05 % | 2073/2074 |
| 10 % | 11.05 % | 21.05 % | 2072/2073 |
| 25 % | 6.57 % | 31.57 % | 2071/2072 |
| 40 % | 17.89 % | 57.89 % | 2070/2071 |
| 40 % | 12.63 % | 52.63 % | 2069/2070 |
| 20 % | 32.63 % | 52.63 % | 2068/2069 |
| 20 % | 32.63 % | 52.63 % | 2067/2068 |
Butwal Power Company Limited (BPCL)
Dividend History:
| Bonus % | Cash % | Total | Fiscal Year |
|---|---|---|---|
| 5 % | 7.5 % | 12.5 % | 2078/2079 |
| 10 % | 10 % | 20 % | 2077/2078 |
| 10 % | 15 % | 25 % | 2076/2077 |
| 10 % | 18 % | 28 % | 2075/2076 |
| 10 % | 18 % | 28 % | 2074/2075 |
| 0 % | 20 % | 20 % | 2073/2074 |
| 7 % | 20 % | 27 % | 2072/2073 |
| 0 % | 20 % | 20 % | 2071/2072 |
| 0 % | 15 % | 15 % | 2070/2071 |
| 0 % | 18 % | 18 % | 2069/2070 |
Citizen Investment Trust (CIT)
Citizen Investment Trust (CIT) is one of the blue chip company in Nepal from Investment sector. It has a primary objective of encouraging the general public to invest and save money. It achieves this by collecting savings from individuals and institutions, which are then invested in various sectors. The goal is to generate returns for the investors. CIT functions as a trust, allowing individuals and institutions to deposit their savings and become beneficiaries.
The funds collected are carefully managed by CIT with the aim of providing investment returns to the depositors. CIT diversifies its portfolio by investing in different sectors such as shares, debentures, bonds, mutual funds, and real estate. This diversification helps minimize risks and maximize potential returns for the trust and its beneficiaries.
Dividend History :
| Bonus % | Cash % | Total | Fiscal Year |
|---|---|---|---|
| 25 % | 1.32 % | 26.32 % | 2078/2079 |
| 30 % | 1.58 % | 31.58 % | 2077/2078 |
| 9 % | 8.89 % | 17.89 % | 2076/2077 |
| 22 % | 1.16 % | 23.16 % | 2075/2076 |
| 22 % | 1.16 % | 23.16 % | 2074/2075 |
| 22.06 % | 1.16 % | 23.22 % | 2073/2074 |
| 22 % | 1.16 % | 23.16 % | 2072/2073 |
| 21.85 % | 1.15 % | 23 % | 2071/2072 |
| 35 % | 6.84 % | 41.84 % | 2070/2071 |
| 50 % | 2.63 % | 52.63 % | 2069/2070 |
Himalayan Distillery Limited (HDL)
Himalayan Distillery Limited is one of the blue chip company in Nepal from Manufacturing and Production sector. It is a well-known and leading beverage company in Nepal that has major business on making and selling different types of alcoholic products like rum, vodka, brandy, and whiskey. It is renowned for its commitment to superior quality. They have modern factories where for the sufficient production and distribution system to make sure their products’ availability all over the country. The company also cares about corporate social responsibility.
It has very good dividend payment history as follows:
Dividend History :
| Bonus % | Cash % | Total | Fiscal Year |
|---|---|---|---|
| 60 % | 10 % | 70 % | 2078/2079 |
| 75 % | 25 % | 100 % | 2077/2078 |
| 50 % | 50 % | 100 % | 2076/2077 |
| 50 % | 52.63 % | 102.63 % | 2075/2076 |
| 0 % | 21.05 % | 21.05 % | 2074/2075 |
| 0 % | 68.42 % | 68.42 % | 2074/2075 |
| 0 % | 21.05 % | 21.05 % | 2073/2074 |
| 0 % | 20 % | 20 % | 2072/2073 |
| 0 % | 20 % | 20 % | 2071/2072 |
| 0 % | 10.52 % | 10.52 % | 2070/2071 |
Unilever Nepal Limited (UNL)
Unilever Nepal Limited is another blue chip company in Nepal from manufacturing and production sector. It is a subsidiary of the multinational consumer goods company Unilever PIc and operates in Nepal, engaging in the production, marketing, and distribution of a wide range of consumer products. It is established in 1992 as a public limited company.
The company offers popular brands such as Sunsilk, Pepsodent, Lux, Fair & Lovely, Surf Excel, Vim, Closeup, and others. With its strong presence in the Nepalese market, Unilever Nepal Limited provides various products to meet the diverse needs of consumers.
It is considered as a blue chip company because of its corporage governance, strong financials, and impressive dividend history.
Dividend History :
| Bonus % | Cash % | Total | Fiscal Year |
|---|---|---|---|
| 0 % | 1215 % | 1215 % | 2078/2079 |
| 0 % | 650 % | 650 % | 2077/2078 |
| 0 % | 100 % | 100 % | 2076/2077 |
| 0 % | 770 % | 770 % | 2075/2076 |
| 0 % | 700 % | 700 % | 2074/2075 |
| 0 % | 1270 % | 1270 % | 2073/2074 |
| 0 % | 1020 % | 1020 % | 2072/2073 |
| 0 % | 990 % | 990 % | 2071/2072 |
| 0 % | 860 % | 860 % | 2070/2071 |
| 0 % | 760 % | 760 % | 2069/2070 |
Shikhar Insurance Company Limited (SICL)
Shikhar Insurance is one of the blue chip company in Nepal from Non-life Insurance sector in NEPSE. It was established 17 years ago and is registered under the Company Act 2063 and Insurance Act 2049. It has extensive network of branches and offices accross the Nepal and holds more than 10% market share.
Sikhar Insurance offers various non-life insurance products and services to individuals, businesses, and organizations. Their insurance offerings cover areas such as motor insurance, fire insurance, engineering insurance, marine insurance, health insurance, liability insurance, and more.
Dividend History :
| Bonus % | Cash % | Total | Fiscal Year |
|---|---|---|---|
| 16 % | 0.84 % | 16.84 % | 2078/2079 |
| 27.769 % | 1.46 % | 29.23 % | 2076/2077 |
| 29 % | 1.53 % | 30.53 % | 2073/2074 |
| 60 % | 3.15 % | 63.15 % | 2072/2073 |
| 24 % | 1.26 % | 25.26 % | 2071/2072 |
| 20 % | 1.05 % | 21.05 % | 2070/2071 |
| 20 % | 0 % | 20 % | 2069/2070 |
| 40 % | 0 % | 40 % | 2068/2069 |
Nepal Telecom (NTC)
Nepal Telecom is one of the top blue chip company in Nepal from others sector in NEPSE. This is the major telephone and internet service provider in Nepal with huge numbers of customers. Majority share of the company is owned by the government so that it is considered as a safe choice for the investment. Growth of this company is also positive and operating as a dominant player in this sector.
Nepal Telecom has following dividend payment history:
Dividend History :
| Bonus % | Cash % | Total | Fiscal Year |
|---|---|---|---|
| 0 % | 40 % | 40 % | 2078/2079 |
| 20 % | 20 % | 40 % | 2077/2078 |
| 0 % | 40 % | 40 % | 2076/2077 |
| 0 % | 45 % | 45 % | 2075/2076 |
| 0 % | 55 % | 55 % | 2074/2075 |
| 0 % | 55 % | 55 % | 2073/2074 |
| 0 % | 51 % | 51 % | 2072/2073 |
| 0 % | 50 % | 50 % | 2071/2072 |
| 0 % | 47 % | 47 % | 2070/2071 |
| 0 % | 46 % | 46 % | 2069/2070 |
Conclusion
Blue chip company in Nepal can be found from many sectors such as banking, manufacturing and production, microfinance, non-life insurance, investment, and others. These companies are selected by comparing their financial strength, popularity, market share, and dividend payment history with in their respective sector. Blue chip companies are taken as low risk investment opportunity for mid-term and long-term perspective. Buying blue chip stock at anytime may not be profitable, you have to buy them at right time.
FAQs
Which share is best to buy in Nepal 2023 ?
Which bank is best for share market in Nepal ?
NABIL is the blue chip bank in Nepal so that undoubtedly it is the best bank for share market in Nepal. But other banks like SANIMA, NBL, MBL are also performing well in Nepalese share market.
Very nice sir
informative post.