Best Stock

By Sandeep Chaudhary

Q4 Report: Top 2 Best Stocks in Each Sector Based on Dividend and Earnings Yields

Published on August 23, 2025

The fourth-quarter (Q4) reports of listed companies provide investors with valuable insights into performance, dividend payouts, and earnings efficiency. By analyzing Dividend per Share (DPPS) yield and Earnings per Share (EPS) yield, we can identify the top two performing stocks in each sector of Nepal’s stock market.

This blog outlines the best opportunities sector-wise, helping investors make informed decisions for sustainable returns.

Banking Sector: PCBL and GBIME

The banking sector remains one of the strongest performers in terms of dividends. Prabhu Bank Limited (PCBL)leads with a dividend yield of 5.62%, closely followed by Global IME Bank Limited (GBIME) with 5.60%.

Symbol	LTP	DPPS	DPPS Yield %
PCBL	254.71	14.33	5.62%
GBIME	252.01	14.11	5.60%

Both banks highlight the strong dividend culture within commercial banks, offering attractive returns to shareholders.

Development Bank Sector: MNBBL and KSBBL

Within development banks, Muktinath Bikas Bank (MNBBL) is the leader with a yield of 4.66%, outperforming Karnali Development Bank (KSBBL) at 3.35%.

Symbol	LTP	DPPS	DPPS Yield %
MNBBL	445.17	20.75	4.66%
KSBBL	516.20	17.30	3.35%

This shows that MNBBL continues to reward investors through strong dividend payouts.

Finance Sector: MFIL and ICFC

In the finance sector, Manjushree Finance Limited (MFIL) leads with a 3.91% yield, while ICFC Finance Limited (ICFC) follows at 3.06%.

Symbol	LTP	DPPS	DPPS Yield %
MFIL	670.99	26.23	3.91%
ICFC	662.12	20.28	3.06%

MFIL’s strong distribution makes it an attractive choice in the finance industry.

Hotel Sector: TRH and CGH

The hotel industry is recovering steadily, and Taragaon Regency Hotel (TRH) leads with an EPS yield of 2.75%, followed by Chandragiri Hills (CGH) at 1.30%.

Symbol	LTP	EPS	EPS Yield %
TRH	956.83	26.27	2.75%
CGH	1058.06	13.75	1.30%

This performance highlights the resilience of TRH in the hospitality sector.

Hydropower Sector: USHL and MEN

The hydropower sector continues to attract investor attention. Upper Syange Hydropower Limited (USHL) tops with an EPS yield of 4.87%, followed by Mountain Energy Nepal (MEN) at 3.81%.

Symbol	LTP	EPS	EPS Yield %
USHL	711.98	34.66	4.87%
MEN	634.07	24.17	3.81%

With increasing demand for energy, hydropower companies like USHL and MEN remain attractive.

Investment Sector: NRN and CHDC

In investment companies, NRN Infrastructure and Development (NRN) provides an EPS yield of 2.40%, slightly higher than CHDC at 2.15%.

Symbol	LTP	EPS	EPS Yield %
NRN	2179.46	52.23	2.40%
CHDC	2574.03	55.45	2.15%

This indicates NRN’s efficiency in generating returns relative to market price.

Life Insurance Sector: ILI and ALICL

In the life insurance category, IME Life Insurance (ILI) leads with a 2.57% EPS yield, ahead of Asian Life Insurance (ALICL) at 2.46%.

Symbol	LTP	EPS	EPS Yield %
ILI	454.06	11.67	2.57%
ALICL	488.57	12.04	2.46%

Life insurance stocks like ILI are becoming more attractive for steady growth investors.

Manufacturing Sector: UNL and HDL

In manufacturing, Unilever Nepal Limited (UNL) continues its dominance with an EPS yield of 4.51%, while Himalayan Distillery Limited (HDL) trails with 2.26%.

Symbol	LTP	EPS	EPS Yield %
UNL	47200.00	2131.00	4.51%
HDL	1371.91	31.02	2.26%

UNL remains a blue-chip favorite due to its unmatched profitability.

Microfinance Sector: CBBL and JBLB

The microfinance sector provides the highest dividend yields overall. Chhimek Laghubitta (CBBL) tops with 6.18%, while Janautthan Laghubitta (JBLB) follows with 4.26%.

Symbol	LTP	DPPS	DPPS Yield %
CBBL	1048.96	64.84	6.18%
JBLB	1465.29	62.40	4.26%

This sector remains highly attractive for income-focused investors.

Non-Life Insurance Sector: HEI and NIL

In non-life insurance, Himalayan Everest Insurance (HEI) leads with a 3.67% EPS yield, followed by NIL with 3.14%.

Symbol	LTP	EPS	EPS Yield %
HEI	580.24	21.29	3.67%
NIL	698.05	21.90	3.14%

These companies provide consistent earnings relative to their valuations.

Others Sector: NTC and MKCL

In the “Others” category, Nepal Telecom (NTC) is the best with an EPS yield of 1.74%, while MKCL follows with 0.89%.

Symbol	LTP	EPS	EPS Yield %
NTC	850.40	14.82	1.74%
MKCL	1606.69	14.36	0.89%

NTC remains a stable and safe stock for long-term portfolios.

The Q4 reports clearly indicate that:

CBBL (6.18%) in microfinance, USHL (4.87%) in hydropower, and UNL (4.51%) in manufacturing are the top yield providers.
Banking leaders PCBL and GBIME also remain highly attractive with yields above 5%.
Across other sectors, MNBBL, MFIL, TRH, NRN, ILI, and HEI represent the strongest investment opportunities.

For investors looking for both dividend income and earnings-driven growth, these top sectoral stocks provide the best balance going forward.

Q4 Report: Top 2 Best Stocks in Each Sector Based on Dividend and Earnings Yields

The Q4 reports clearly indicate that: CBBL (6.18%) in microfinance, USHL (4.87%) in hydropower, and UNL (4.51%) in manufacturing are the top yield providers. Banking leaders PCBL and GBIME also remain highly attractive with yields above 5%. Across other sectors, MNBBL, MFIL, TRH, NRN, ILI, and HEI represent the strongest investment opportunities. For investors looking for both dividend income and earnings-driven growth, these top sectoral stocks provide the best balance going forward.

Imports Surge but Duty Collection Concentrates on High-Tariff Brackets

Imports Surge but Duty Collection Concentrates on High-Tariff Brackets Nepal’s foreign trade figures for the first month of the fiscal year 2082/83 (Shrawan, mid-July to mid-August 2025) reveal a striking contrast between imports and customs duty collection. According to official data, the country recorded imports worth Rs. 143.04 billion, while the government collected Rs. 13.61 billion in import duties. The distribution of imports and duties across different tariff rates highlights how Nepal’s revenue collection is disproportionately driven by higher tariff brackets, despite lower import shares in some cases.

Nepal’s Real Estate Market Cools Sharply in Shrawan

Nepal’s Real Estate Market Cools Sharply in Shrawan Nepal’s property market saw a decisive slowdown in Shrawan (mid-July to mid-August), with double-digit declines across most transaction categories at land revenue (Malpot) offices nationwide. Total land-and-housing service transactions fell to 104,218, down 18.07% from 127,206 a year earlier—signaling weaker demand and more cautious borrowing behavior. Sales activity contracted markedly. The clearest proxy for buy–sell momentum—deed registrations (likhat parit)—dropped from 43,835 to 31,621, a steep 27.86% decline. Ownership transfers (nam sari) slipped 21.07% (from 4,162 to 3,285), while record amendments plunged 45.88% (from 11,156 to 6,038). Hal Sabik (old record updates) also retreated 23.03% (from 3,303 to 2,313). In short: fewer sales, fewer title changes, fewer ancillary updates.

Prabhu Insurance Q4: Stable Revenue, Declining Profitability, and Strong Valuation Premium

Prabhu Insurance (PRIN) has published its audited Q4 2024/25 results, showing weaker performance compared to last year. The company’s total revenue fell by 25.70% YoY to Rs. 962.10 million, while net income dropped sharply by 56.8% to Rs. 211.96 million. Profit margins compressed, with net margin declining to 22.03% from 48.47% a year ago. Similarly, returns weakened as ROA slipped to 3.24% and ROE to 6.38%, both well below last year’s levels. Earnings per share also fell significantly to Rs. 14.70 from Rs. 34.05, while the P/E ratio jumped to 61.89, indicating the stock remains highly valued despite reduced profitability. On the balance sheet side, book value per share improved to Rs. 325.91, and the market value per share closed at Rs. 910, showing that PRIN trades at nearly 2.8 times its book value. Operationally, the company issued 123,873 policies, almost flat YoY, while renewed policies rose 27.95%. Claims paid fell by 24.96%, but outstanding claims increased, raising some concerns. Although PRIN had distributed Rs. 18.95 per share in dividend earlier, the steep decline in profitability could pressure future payouts. Overall, the insurer shows stable topline operations but is facing profitability and efficiency challenges despite maintaining high market valuations.

Soaltee Hotel Q4: Strong Revenue Growth, Stable Margins, and Robust Profitability

The book value per share stood at Rs. 27.15, while the market price surged to Rs. 577.58, trading at more than 21x its book value. This premium pricing suggests high investor confidence and brand strength. Dividend history remained stable, with SHL continuing its shareholder return policy — the company had distributed Rs. 36.84 per share previously.

Hathway Investment Nepal Q4: Revenue Jumps Sharply, Margins Stable, But Valuation Stretched

Hathway Investment Nepal reported Q4 revenue of Rs. 197.49 million (+275.88% YoY) and net income of Rs. 64.95 million (-22.67% YoY). Margins remain stable with 32.89% net margin, but ROA (2.39%) and ROE (3.08%) indicate moderate returns. EPS stood at Rs. 2.29, while the stock trades at a very high P/E of 531.92, signaling stretched valuations. Despite the revenue rebound, the absence of dividends this year contrasts with last year’s Rs. 10.53 payout.

NESDO Laghubitta Q4: Heavy NPL Pressure Drags Earnings into Red Despite Strong Revenue Base

NESDO Sambridha Laghubitta reported Q4 revenue of Rs. 530.40 million (-33.31% YoY) but slipped into a net loss of Rs. 10.09 million, compared to Rs. 67.86 million profit last year. High NPLs at 21.06% and a stretched CD ratio of 167.84% have severely impacted earnings. ROA and ROE turned negative at -0.24% and -1.23%, while EPS fell to -3.47. Despite financial stress, the stock trades at Rs. 1,716.78, showing market optimism, though no dividend was declared this year

City Hotel Limited Q4: Heavy Losses Persist Despite Strong Revenue Base

City Hotel Limited (CITY) reported Q4 FY 2024/25 revenue of Rs. 522.31 million (-9.09% YoY) but a net loss of Rs. 198.97 million. Gross profit margin stood at 28.77%, while net margin was deeply negative at -38.09%. ROA and ROE were -3.58% and -13.83% respectively. EPS came in at -Rs. 11.89, with book value declining to Rs. 80.83. Despite ongoing losses, CITY’s market value per share jumped to Rs. 873.65, suggesting that investors are pricing in long-term tourism recovery prospects.

Standard Chartered Nepal Q4 Results: Stable Profitability Despite Revenue Dip

Standard Chartered Bank Nepal (SCB) reported Q4 FY 2024/25 revenue of Rs. 8.33 billion (-6.60% YoY) with net income of Rs. 3.03 billion (-8.4% YoY). Despite revenue pressure, profit margin strengthened to 36.33%, while ROE stood at 14.41%. Asset quality improved with NPLs down to 1.47% and provisioning coverage rising to 160%. EPS stood at Rs. 30.17, with a PE ratio of 21.75. The bank continues to maintain strong capitalization and liquidity, positioning itself as one of the most stable commercial banks in Nepal.

Q4 Report: Top 2 Best Stocks in Each Sector Based on Dividend and Earnings Yields

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