Independent Research · Nepal Capital Markets
Rigorous fundamental analysis of Nepal's capital markets. We go deep on sectors and companies that others overlook, and share our work openly.
Latest Research
Nepal's 14-company non-life insurance sector wrote NPR 4,491 crore in premiums in FY 2081/82. The August 2026 Bhotekoshi/Trishuli floods then generated NPR 25.87 billion in industry claims.
IME Life Insurance's effective tax rate jumped to 43.5% in FY2081/82 as a start-up tax-loss shield neared exhaustion, even as its investment yield fell from 10.37% to 6.90% in two years.
Chilime Hydropower's 22.1 MW plant holds Nepal's best legacy power tariff, but a frozen NPR 8.17 rate, a 2047 licence expiry and a NPR 41 billion guarantee to affiliated projects complicate the growth story.
Prabhu Bank, a merger-assembled Nepali commercial bank, posted a full-year net loss in FY2082/83 with gross NPL at 15.55% — the sector's worst large-bank credit print in a year peers grew profit sharply.
CEDB Holdings is a leveraged closed-end fund of NEPSE hydro shares plus pre-cash-flow hydro subsidiaries, trading at roughly 4.85 times its own marked-up group book value — a structure, not a growth franchise.
Nepal's telecom sector is a maturing duopoly: NTC (~53% share) and Ncell (~47%) serve 101% voice teledensity in structural decline while mobile broadband penetration has surged to 139.5%. Ncell's August 2029 licence expiry is the sector's single largest near-term event.
Coverage
Nepal's 20 commercial banks hold over NPR 6 trillion in assets — the dominant segment of the capital market.
Nepal's 17 licensed development banks manage NPR 721 billion in assets, down from 79 institutions in 2010 after NRB-driven consolidation.
Nepal's hydropower sector represents one of the most compelling long-term structural opportunities in South Asia — 83,000 MW of economically viable potential, a single sovereign offtaker, and an infrastructure build-out measured in decades.
A sector undergoing painful capacity rationalization.
Nepal's 14 life insurers manage a NPR 80,449 crore life fund — growing at a 22.
Nepal's 14 non-life insurers wrote NPR 4,491 crore in gross premiums in FY 2081/82, with penetration at just 0.
Nepal's two domestic reinsurers operate behind a regulatory moat — mandatory cession rules — that is being systematically phased out.
Nepal's listed investment companies are largely closed-end funds and holding companies whose NAV-to-price relationship is the central analytical question.
Nepal's alcohol excise revenue grew +26.
Nepal's effective telecom duopoly — NTC (~53% mobile share) and Ncell (~47%) — serves a 101% voice teledensity market in structural decline while broadband penetration surged to 139.
Our Approach
Our investment philosophy is rooted in timeless principles of fundamental analysis, adapted for the unique characteristics of Nepal's emerging market. We believe that patient, disciplined research can uncover opportunities that others overlook.
“The market is a pendulum that forever swings between unsustainable optimism and unjustified pessimism. The intelligent investor is a realist who sells to optimists and buys from pessimists.”Read our full philosophy
We focus on sustainable value creation, not short-term market movements. Our research horizon extends years, not quarters.
We dig deep into financial statements, competitive dynamics, and management quality to understand true business value.
We form our own conclusions through rigorous analysis, unswayed by market sentiment or popular opinion.
We seek to understand intrinsic value and pay a price that provides protection against uncertainty and our own errors.