"Blue chip stocks are the stocks of nationally known companies whose
value and dividend are reliable; typically have high price and low
yield;"blue chips are usually safe investments"
Source: http://www.thefreedictionary.com/blue-chip+stock
I have my list of top two companies in each sector with exception to hotel group. The list is as follows:
A. Commercial Banks:
1. Everest Bank Limited
2. Nabil Bank Limited
The new monetary policy unveiled by NRB has introduced a provision where all the commercial banks should raise their paid up capital to Rs.2 billion by the end of Ashadh 2071, EBL's paid up capital is still below Rs.2 billion so one can expect 25% bonus share and cash dividend as well. So for me its at the top of the list. On the other hand, Nabil Bank Limited is the highest profit earning bank till the 3rd quarter and the 4th quarter report is yet to be out and one can expect a mix of bonus and cash dividend.
B. Development Banks:
1. Muktinath Bikash Bank Limited
2. Sahayogi Bikash Bank Limited
Muktinath Bikash Bank has made significant progress over the years and has very good growth prospects in the future. The bank has not published its 4th quarterly reports yet but the expectations regarding the returns from this bank is very high and it is one of the best performing development banks of the country. The bank is also issuing right shares in the ratio of 10:3 in the near future. Likewise, we don't discuss much about Janakpur based Sahayogi Bikash Bank but in my view it is a hidden gem with equally good returns prospects for its shareholders.
C. Hydropower Companies:
1. Chilime Hydropower Company Limited
2. Butwal Power Company Limited
CHCL is one script that I have been advising every investor to add in his/her portfolio. The company is one of the best in terms of providing returns to its shareholders. One can expect better returns in the future given that the four other projects that it has been developing currently are completed within the stipulated time. BPCL, on the other hand, is also developing various projects and one can expect good returns in the future. The company is also issuing right shares in the ratio of 3:2 in the near future.
D. Insurance Companies:
1. Sagarmatha Insurance Company Limited
2. Nepal Life Insurance Company Limited
SIC has raised its paid up capital as directed by Insurance Board by offering 100% bonus shares to its share holders. It also provided 29.62% cash dividend to its shareholders from the profit of fiscal year 2068/69. The company has good amount of reserves and has made good profits till the 3rd quarter so one can expect good returns in the future as well. Likewise, NLIC can be good choice from the life insurance sector. It provided 70% bonus shares and 56.31% cash dividend to its shareholders. It can be good choice if you are thinking to hold for long term.
E. Finance Companies:
1. Janaki Finance Limited
2. Om Finance Limited
Janaki Finance is risky script however it is very good in terms of returns to its shareholders. On the other hand Om Finance is another hidden gem with excellent growth in its profit. The company has good reserve and dividend history.
F. Hotel Group:
1. Soaltee Hotel Limited
Soaltee Hotel Limited's share price is over valued considering its par value at Rs.10. However, the company has a very good history of providing bonus shares and cash dividend to its share holders and will continue to do in the future as well considering its growth in profits and the amount in the reserve.
Src : Freak Money, Jamb Forum
Source: http://www.thefreedictionary.com/blue-chip+stock
I have my list of top two companies in each sector with exception to hotel group. The list is as follows:
A. Commercial Banks:
1. Everest Bank Limited
2. Nabil Bank Limited
The new monetary policy unveiled by NRB has introduced a provision where all the commercial banks should raise their paid up capital to Rs.2 billion by the end of Ashadh 2071, EBL's paid up capital is still below Rs.2 billion so one can expect 25% bonus share and cash dividend as well. So for me its at the top of the list. On the other hand, Nabil Bank Limited is the highest profit earning bank till the 3rd quarter and the 4th quarter report is yet to be out and one can expect a mix of bonus and cash dividend.
B. Development Banks:
1. Muktinath Bikash Bank Limited
2. Sahayogi Bikash Bank Limited
Muktinath Bikash Bank has made significant progress over the years and has very good growth prospects in the future. The bank has not published its 4th quarterly reports yet but the expectations regarding the returns from this bank is very high and it is one of the best performing development banks of the country. The bank is also issuing right shares in the ratio of 10:3 in the near future. Likewise, we don't discuss much about Janakpur based Sahayogi Bikash Bank but in my view it is a hidden gem with equally good returns prospects for its shareholders.
C. Hydropower Companies:
1. Chilime Hydropower Company Limited
2. Butwal Power Company Limited
CHCL is one script that I have been advising every investor to add in his/her portfolio. The company is one of the best in terms of providing returns to its shareholders. One can expect better returns in the future given that the four other projects that it has been developing currently are completed within the stipulated time. BPCL, on the other hand, is also developing various projects and one can expect good returns in the future. The company is also issuing right shares in the ratio of 3:2 in the near future.
D. Insurance Companies:
1. Sagarmatha Insurance Company Limited
2. Nepal Life Insurance Company Limited
SIC has raised its paid up capital as directed by Insurance Board by offering 100% bonus shares to its share holders. It also provided 29.62% cash dividend to its shareholders from the profit of fiscal year 2068/69. The company has good amount of reserves and has made good profits till the 3rd quarter so one can expect good returns in the future as well. Likewise, NLIC can be good choice from the life insurance sector. It provided 70% bonus shares and 56.31% cash dividend to its shareholders. It can be good choice if you are thinking to hold for long term.
E. Finance Companies:
1. Janaki Finance Limited
2. Om Finance Limited
Janaki Finance is risky script however it is very good in terms of returns to its shareholders. On the other hand Om Finance is another hidden gem with excellent growth in its profit. The company has good reserve and dividend history.
F. Hotel Group:
1. Soaltee Hotel Limited
Soaltee Hotel Limited's share price is over valued considering its par value at Rs.10. However, the company has a very good history of providing bonus shares and cash dividend to its share holders and will continue to do in the future as well considering its growth in profits and the amount in the reserve.
Src : Freak Money, Jamb Forum
