As we reflect upon the fiscal year 2079/80, the release of unaudited financial statements by various companies provides a window into their performance. This analysis meticulously curates the top 5 stocks across diverse sectors, leveraging the metric of Distributed Profit Per Share (DPS). In this exploration, we gain valuable insights into each sector’s dynamics, while acknowledging that some stocks may appear overvalued according to the Graham number. However, the spotlight on dividend yield adds an appealing dimension for investors, even as dividends are yet to be declared. Since, dividends have not been declared yet, we have used the dividend yield calculation as follows:
Commercial bank
Among the 19 commercial banks, the top 5 stocks have been chosen based on distributed profit per share. Everest Bank Limited (EBL) emerges as a standout option due to its highest dividend yield, even though the Graham number suggests overvaluation.
| SN | STOCK | EPS | DPS | BVPS | LTP | YIELD |
| 1 | EBL | 31.72 | 40.5 | 238.33 | 606 | 6.68 |
| 4 | SANIMA | 21.02 | 17.73 | 155.51 | 294 | 6.03 |
| 5 | MBL | 18.05 | 15.29 | 159.13 | 272 | 5.62 |
| 3 | SCB | 37.39 | 28.99 | 213.98 | 556 | 5.21 |
| 2 | NICA | 40.22 | 31.99 | 256.41 | 787 | 4.06 |
Development Bank
From the pool of 16 development banks, the top 5 stocks have been chosen based on distributed profit per share. Miteri Development Bank Limited (MDB) is the standout option with the highest dividend yield, despite the Graham number indicating overvaluation.
| SN | STOCK | EPS | DPS | BVPS | LTP | YIELD |
| 1 | MDB | 15.79 | 13.83 | 143 | 401 | 3.45 |
| 3 | SHINE | 18.37 | 11.36 | 144 | 377 | 3.01 |
| 2 | LBBL | 18.11 | 11.61 | 182 | 390 | 2.98 |
| 4 | GBBL | 23.47 | 10.74 | 143 | 379 | 2.83 |
| 5 | MNBBL | MNBBL | 10.03 | 160 | 392 | 2.56 |
Finance
Out of the 16 finance companies, the top 5 stocks have been selected based on distributed profit per share. Guheswori Merchant Banking & Finance Limited (GMFIL) is the standout choice with the highest dividend yield, despite the Graham number indicating overvaluation.
| SN | STOCK | EPS | DPS | BVPS | LTP | YIELD |
| 2 | GMFIL | 5.53 | 6.6 | 141 | 341 | 1.94 |
| 3 | ICFC | 13.97 | 7.81 | 156 | 465 | 1.68 |
| 4 | SIFC | 6.88 | 5.27 | 137 | 330 | 1.60 |
| 1 | MFIL | 21.57 | 8.22 | 155 | 519 | 1.58 |
| 5 | GFCL | 9.62 | 1.99 | 252 | 426 | 0.47 |
Microfinance
From a pool of 57 microfinance companies, the top 5 stocks have been chosen based on distributed profit per share. Forward Microfinance Laghubitta Bittiya Sanstha Limited (FOWAD) is the standout choice with the highest dividend yield, despite the Graham number indicating overvaluation
| SN | STOCK | EPS | DPS | BVPS | LTP | YIELD |
| 5 | FOWAD | 20.98 | 72.59 | 276 | 1,256.00 | 5.78 |
| 3 | SKBBL | 40.69 | 52.21 | 259 | 904.00 | 5.78 |
| 1 | CBBL | 37.45 | 51.14 | 238 | 953.00 | 5.37 |
| 4 | MSLB | 17.61 | 29.31 | 154 | 785.00 | 3.73 |
| 2 | FMDBL | 17.16 | 15.44 | 217 | 653.00 | 2.36 |
Life Insurance
Within the realm of life insurance, 10 companies were carefully reviewed to identify the top 5 stocks based on distributed profit per share. Among these, Himalayan Life Insurance (HLI) emerges as a standout choice, boasting the highest dividend yield, even as the Graham number suggests a degree of overvaluation.
| SN | STOCK | EPS | DPS | BVPS | LTP | YIELD |
| 4 | HLI | 7.25 | 7.25 | 118 | 431.00 | 1.68 |
| 1 | NLICL | 7.27 | 7.27 | 117 | 586.00 | 1.24 |
| 5 | NLIC | 8.22 | 8.22 | 118 | 688.00 | 1.19 |
| 2 | SJLIC | 6.47 | 6.47 | 161 | 547.00 | 1.18 |
| 3 | ALICL | 7.61 | 7.61 | 114 | 689.00 | 1.10 |
Non-life Insurance
Among the 12 non-life insurance companies assessed, the top 5 stocks have been identified based on distributed profit per share. Nepal Insurance Company Limited (NICL) emerges as the most compelling option, featuring the highest dividend yield, despite indications of overvaluation from the Graham number.
| SN | STOCK | EPS | DPS | BVPS | LTP | YIELD |
| 1 | NICL | 26.76 | 26.76 | 196 | 775.00 | 3.45 |
| 4 | NIL | 27.49 | 27.49 | 210 | 846.00 | 3.25 |
| 3 | HEI | 17.41 | 17.41 | 188 | 574.00 | 3.03 |
| 5 | PRIN | 17.55 | 17.55 | 198 | 674.00 | 2.60 |
| 2 | SALICO | 17.47 | 17.47 | 228 | 716.00 | 2.44 |
Manufacturing and Products
In the domain of manufacturing and products, an evaluation of 8 companies resulted in the identification of the top 5 stocks based on distributed profit per share. Unilever Nepal Limited (UNL) stands out as the most attractive option, boasting the highest dividend yield, even though the Graham number indicates potential overvaluation
| SN | STOCK | EPS | DPS | BVPS | LTP | YIELD |
| 2 | UNL | 1988 | 1988 | 4734 | 35,800.00 | 5.55 |
| 1 | BNT | 474 | 474 | 3235 | 13,650.00 | 3.47 |
| 4 | HDL | 27.17 | 27.17 | 138 | 1,943.00 | 1.40 |
| 3 | SHIVM | 6.87 | 6.87 | 206 | 510.00 | 1.35 |
Hotel and Tourism
In the dynamic field of hotel and tourism, 6 companies underwent scrutiny to determine the top 5 stocks based on distributed profit per share. Taragaon Regency Hotel Limited (TRH) emerges as the optimal choice, presenting the highest dividend yield despite the Graham number indicating potential overvaluation
| STOCK | EPS | DPS | BVPS | LTP | YIELD |
| TRH | 20.43 | 20.43 | 127 | 762.00 | 2.68 |
| OHL | 11.82 | 11.82 | 182 | 770.00 | 1.54 |
| SHL | 6.38 | 6.38 | 21 | 450.00 | 1.42 |
| CGH | 9.85 | 9.85 | 84 | 1,254.00 | 0.79 |
| KDL | 5.04 | 5.04 | 97 | 864.00 | 0.58 |
As we conclude this comprehensive analysis of diverse sectors, it becomes evident that Distributed Profit Per Share (DPS) serves as a valuable metric in assessing the performance of various companies. Despite potential overvaluation indicated by the Graham number, the focus on dividend yield remains a compelling factor for investors. The top 5 stocks selected from each sector present opportunities for investors to align their portfolios with companies displaying strong potential and attractive dividend yields. This multi-faceted approach to stock selection allows for a well-informed investment strategy that considers both profitability and value, fostering a balanced and profitable investment journey.
