Hydropower Sector Q2 Report: Which Stocks Are the Best for Investment?

The second-quarter (Q2) financial reports of hydropower companies listed on the Nepal Stock Exchange (NEPSE) have been published. Investors are now keen to identify the best stocks based on Last Traded Price (LTP), Earnings Per Share (EPS), and Book Value (BV). Analyzing these key financial indicators, some companies stand out as strong investment opportunities.

1. Low-Priced Stocks with Strong Fundamentals

Investors looking for affordable stocks with good financial strength should consider the following:

✅ SHPC is the most affordable stock (LTP: 498) but has the highest book value (BV: 192.03), indicating strong financial stability.
✅ TAMOR and KPCL also offer reasonable prices with stable profitability, making them good investment options.

2. High EPS Stocks (Best Profitability)

Earnings Per Share (EPS) is a crucial metric that measures a company’s profitability. Higher EPS indicates stronger earnings performance.

✅ MEN has the highest EPS (39.34), making it the most profitable hydropower stock.
✅ SAHAS follows closely with an EPS of 37.56 and a strong BV of 178.9, making it a solid performer.
✅ NHDL also shows good profitability but is slightly more expensive than the others.

3. Strongest Book Value (BV) Stocks

Book Value (BV) measures a company’s net worth per share. A higher BV indicates strong financial stability.

✅ SHPC has the highest BV (192.03), indicating it has strong financial backing and assets.
✅ SAHAS ranks second with a BV of 178.9, making it both profitable and financially secure.
✅ KBSH has a good BV (150.73), but its high LTP (2476) makes it an expensive choice for new investors.

Conclusion: Which Stocks Are the Best for Investment?

• If you’re looking for low-priced stocks with strong fundamentals: SHPC (LTP: 498, BV: 192.03) is a great choice.

• If profitability is your priority: MEN (EPS: 39.34), SAHAS (EPS: 37.56) are top performers.

• For long-term stability and asset-backed security: SAHAS and SHPC are excellent picks