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Contact No: 01-5111145

Newsletter Published on 13th August 2021

Index Value

NEPSE 3179

SENSITIVE 591.16

FLOAT 222.6

SEN. FLOAT 198.77

Your companion to Nepal Stock Market

Aakash Capital Limited

Weekly Newsletter From Aakash Capital Limited for the week ending 13th August 2021

NEPSE UPDATE

Indicators

8th August 12th August (+)/(-)

2021 2021 Change %

NEPSE 3107.45 3179 2.30%

SENSITIVE 579 591.16 2.10%

FLOAT 217.06 222.6 2.55%

SEN. FLOAT 193.62 198.77 2.66%

BANKING 2102.92 2124.94 1.05%

TRADING 4096.01 3861.97 -5.71%

HOTELS & Tourism 3776.55 3763.83 -0.34%

DEVELOPMENT BANKS 5021.32 5749.25 14.50%

HYDROPOWER 3459 3813.06 10.24%

FINANCE 2694.92 3012.96 11.80%

NON LIFE INSURANCE 14658.17 14662.46 0.03%

MANU. & PRO. 6698.49 6822.36 1.85%

OTHERS 2140.79 2117.58 -1.08%

MICROFINANCE 5822.41 5761.34 -1.05%

LIFE INSURANCE 18031.72 18213.37 1.01%

MUTUAL FUND 17.48 17.45 -0.17%

Investment 115.91 118.05 1.85%

Market Summary Statistics (8th – 12th August, 2021)

Total Turnover (Rs.) 79,260,840,916

Total Traded Shares 149,832,310 Total Number of Transactions 713,730

Scrip’s Traded 230

Market Cap at Week start 4,337,173.06 Millions Market Cap at Week end 4,437,270.53 Millions Floated Market Cap at Week start 1,534,526.75 Millions Floated Market Cap at Week end 1,574,090.68 Millions

Bullion Update As on 13th August 2021

Hallmark Gold Rs.89,700/Tola

Worked Gold Rs.89,200/Tola

Silver Rs.1,185/ Tola

***Quote for the week***

An Investment in Knowledge Pays the Best Interest.

– BENJAMIN FRANKLIN

Market Summary Highlights

The Market witnessed by +2.30% Positive change in

Nepse index (+71.55 points) in the trading week

between 8th – 12th August 2021. The sensitive index,

which measures the Performance of the companies

classified under group “A”, registered the rise of

2.10% or (+12.16 Points). Similarly, float index which

measures the performance of securities which are

floated to public went up by +2.55% or (+5.54 Points)

and sensitive float also incline by +2.66 % or (+5.15

Points).

This week market opened at 3107.45 levels went up

by +0.66 Points sit at 3108.12 levels on Sunday. The

Index increased with +1.54 Points on Monday,

increased by +51.86 Points on Tuesday, again

increased by 0.94 Points on Wednesday & market

followed trend increasing by +16.41 Points on last

day of trading week i.e. Thursday & this week market

sits at 3179 levels.

In this review period, Among 13 sub-indices

Development Bank registered highest gain by +14.5%

(+727.93 Points) whereas Trading registered highest

loss by -5.71% (-234.04 Points).The Sub- Indices that

registered Positive this week are: Banking (+1.05%),

Hydropower (+10.24%), Finance (+11.80%), Non-Life

Insurance (+0.03%), Manu. & Pro. (+1.85%), Life

Insurance (+1.01%) & Investment (+1.85%). The sub-

indices that registered negative this week are Hotels

& Tourism (-0.34%), others (-1.08%) & Mutual Fund (-

0.17%).

The market Witnessed increasing volume of

transaction & increasing turnover this week

compared to last week. The Total turnover stood at

Rs. 79.26 Billion with average of 15.85 Billion a Day.

Market Announcements

Manushi Lagubitta Bittiya Sanstha Limited is opening its 3,93,750 units of IPO shares to the general public from today

(27th Shrawan, 2078).

Mailung Khola Jal Vidhyut Company Limited has allotted its 7,36,286 units of IPO shares to the general public on 26th

Shrawan, 2078.

Sahas Urja Limited is opening its 35,00,000 units IPO shares to the project affected local residents of Solukhumbhu

District from 29th Shrawan .

Buddha Bhumi Nepal Hydropower Company Limited has published an offer letter to issue 4,00,000 units IPO shares to

the project affected local residents of Nuwakot District from 32nd Shrawan to 14th Bhadra, 2078.

Prabhu Life Insurance Company Limited has posted a net profit of Rs 170.63 million and published its 4th quarter

company analysis of the fiscal year 2077/78.

Himalayan Distillery Limited has posted a net profit of Rs 1.04 billion and published its 4th quarter company analysis of

the fiscal year 2077/78.

Shree Investment Finance Company Limited has posted a net profit of Rs 114.04 million and published its 4th quarter

company analysis of the fiscal year 2077/78.

Bottlers Nepal Limited (Terai) has posted a net profit of Rs 426.34 million and published i ts 4th quarter company

analysis of the fiscal year 2077/78.

Bottlers Nepal Limited(Balaju) has posted a net profit of Rs 449.73 million and published its 4th quarter company

analysis of the fiscal year 2077/78.

National Microfinance Laghubitta Bittiya Sanstha Limited has posted a net profit of Rs 325.74 million and published its

4th quarter company analysis of the fiscal year 2077/78.

Himalayan General Insurance Company Limited has posted a net profit of Rs 155.56 million and published its 4th

quarter company analysis of the fiscal year 2077/78.

NRN Infrastructure and Development Limited has posted a net profit of Rs 110.49 million and published its 4th quarter

company analysis of the fiscal year 2077/78.

Nepal Bank Limited has posted a net profit of Rs 3.06 billion and published its 4th quarter company analysis of the

fiscal year 2077/78.

NLG Insurance Company Limited has posted a net profit of Rs 252.27 million and published its 4th quarter company

analysis of the fiscal year 2077/78.

United Insurance Company Limited has posted a net profit of Rs 75.23 million and published its 4th quarter company

analysis of the fiscal year 2077/78.

Butwal Power Company Limited has posted a net profit of Rs 504.61 million and published its 4th quarter company

analysis of the fiscal year 2077/78.

Radhi Bidyut Company Limited has posted a net profit of Rs 61.45 million and published its 4th quarter company

analysis of the fiscal year 2077/78.

Prime Life Insurance Company Limited has posted a net profit of Rs 308.28 million and published its 4th quarter

company analysis of the fiscal year 2077/78.

Nepal Life Insurance Company Limited has posted a net profit of Rs 535.94 million and published its 4th quarter

company analysis of the fiscal year 2077/78.

Goodwill Finance Limited has posted a net profit of Rs 183.19 million and published its 4th quarter company analysis

of the fiscal year 2077/78.

Ridi Hydropower Development Company Limited has posted a net profit of Rs 72.88 million and published its 4th

quarter company analysis of the fiscal year 2077/78.

Nepal Investment Bank Limited has posted a net profi t of Rs 3.65 billion and published its 4th quarter company

analysis of the fiscal year 2077/78.

Laxmi Bank Limited has posted a net profit of Rs 1.54 billion and published its 4th quarter company analysis of the

fiscal year 2077/78.

Mega Bank Nepal Limited has posted a net profit of Rs 2.30 billion and published its 4th quarter company analysis of the fiscal year 2077/78.

NEPSE - TECHNICAL ANALYSIS

The Nepalese stock market (NEPSE) has ended its three and half years of bearish trend in mid-Jan 2020 as seen from monthly

Chart. The bullish trend was started when the index hit 1181 level.

In the review week, NEPSE opened at 3107.45 and formed a Green candle by closing at 3179 Levels at the end of week gaining

+71.55 points during the week. Market is creating all time high level by touching 3198 level this week. The total turnover stood

Rs. 79.26 Billion average turnover is Rs.15.85 billion per day.

TECHNICAL INDICATORS

Indicators (Daily) Value Signal

Support (S1) 3066 -

Resistance (R1) 3230 -

Relative Strength Index (RSI) 76.76 Over Buy

Moving Average Convergence Divergence (MACD) 66.35 Bullish

5-Day Exponential Moving Average (EMA) 3151 Bullish

20-Day Exponential Moving Average (EMA) 3072 Bullish

180-Day Exponential Moving Average (EMA) 2572 Bullish

Relative Strength Index (RSI) Analysis

RSI is a moment indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions

in the price of a stock. RSI is typically used on a 14-day time frame, measured on a scale from 0 to 100, where a value above 70

represents overbought and below 30 represents oversold condition.

Current RSI value of NEPSE is 76.76 which indicate the market is at Bullish Zone. There is no formation of divergence in daily

chart.

Bollinger Band

Bollinger band is a technical indicator that consists of a set of lines plotted two standard deviations up and below a 21-day

simple moving average. The bands are an indication of volatility; a widening gap indicates hi gher volatility and vice-versa. Prices

are relatively high when above the upper band and low when below the lower band.

The upper, middle and the lower bands are at 3212, 3072 and 2931 respectively. The market is trading in between middle band

and lower band which indicates short term bear for the market.

Manushi Laghubitta Bittiya Sanstha Limited (MANU)

MANU (Manushi Laghubitta Bittiya Sanstha Ltd.) is a “D” class national level microfinance organization that was established on

June 24, 2018, was approved by Nepal Rastra Bank on October 11, 2018, and began operations on October 29, 2018. Following

that, MANU took over the microfinance business run by Manushi, a Nepalese non-governmental organization founded in 1991

and working as a financial intermediary since April 2002. MLBSL specializes in offering microfinance loans using the Joint

Liability Group (JLG) model, which requires each group to have at least five members.

To enhance the living standard of local community, the financial institution is also working in the fields of Cattle &

agriculture,Small Business, etc with the support and cooperation of the concerned agencies. For the development

and promotion of cashless banking services, the financial institution is expanding its financial services in the rural

areas in a simple and easy way by motivating the members towards the digital transactions. Keeping the interest of

the members and the community at the forefront, it is providing timely facilities by studying the latest services that

have a positive impact on the development of society

Board of Director

Name Designation Share Quantity

Ms. Padmasana Shakya Chairman 15,000

Ms. Dibya Tara Tuladhar Director 5,000

Ms. Nabina Dhakhwa Director 10,000

Mr. Chandra Prasad Kachipati Director 10,000

Ms. Pramila Rijal Acharya Director 6,000

Mr. Subarna Kumar Karmacharya Independent Director -

Capital Structure

Authorized Capital Rs. 20,00,00,000

Issued Capital Rs. 10,93,75,000

Current Paid up capital Rs. 7,00,00,000

Paid up Capital after Ipo Issuance Rs. 10,93,75,000

Uses of Fund

Areas Amount

Branch Expansion 20,000,000

Cattle and Agricultural Loans 5,000,000

Service Loans 5,000,000

Small Business Loans 9,375,000

Total 39,375,000

The Following Table shows the financials highlights of Manushi Laghubitta Bittiya Sanstha

Limited From FY 2074/75 to FY 2076/77 (Audited) & From FY2077/78 to 2079/80 (Projected).

Particulars Actual

CAGR Estimated*

2074/2075 2075/2076 2076/2077 2077/2078 2078/2079 2079/2080

Paid-up capital ('000) 70000 70000 70000 0.00% 109375 109375 109375

Reserves & Surplus ('000) 26857.51 22879.5 34282.28 8.48% 33837 50760 80117

Borrowings ('000) 285161.54 256680.56 373215.88 9.38% 433199 541499 676874

Deposits ('000) 463505.38 552309.35 622204.9 10.31% 649799 812249 1015311

Loans & Advances ('000) 800929.33 790841.6 981151.25 7.00% 1036935 1299070 1629491

Net Interest Income ('000) 58316.99 67571.57 60898.11 1.45% 74938 93856 117005

Net Profit ('000) 12117.71 -3172.89 11964.06 -0.43% 10957 16923 29357

Net worth per share 138.37 132.69 148.97 2.49% 130.94 146.41 173.25

Earnings per share (Rs.) 17.31 -4.53 17.09 -0.43% 10.02 15.47 26.84

Return on Equity (%) 12.51% -3.42% 11.47% -2.85% 7.65% 10.57% 15.49%

As per the report published by the company, Paid up Capital is Rs 7 Crore and after Issuance of IPO its paid up capital

will be 10.93 crore. Reserve and Surplus has also reported 3.42 crore which can use it for various purposes for

developing the company. Deposits and Borrowing has also reported increment which states that it is involving more

with its customers. The Deposits and Borrowing are 62.22 Crore & 3.73 Crore respectively by FY 2076/77. Increasement

in Interest income has helped to gain Net interest Income, it has also reported 6.08 crore which is estimated to be

Rs.11.7 Crore by FY 2079/80 .Yet,The net profit has slightly decreased to Rs.1.19 crores by FY 2076/77. It is estimated

to have 2.93 crore Net Profit by the year FY 2079/80.

It has also reported EPS of Rs.17.09 by FY 2076/77 which is estimated to be Rs.26.84 by FY79/80 .The Net worth per

Share is Rs 148.97 by FY 76/77 and estimated Rs.173.25 by FY 79/80.

Financial Highlights

0

10000

20000

30000

40000

50000

60000

70000

80000

2074/2075 2075/2076 2076/2077

Paid-up capital ('000) Reserves & Surplus ('000)

0

20000

40000

60000

80000

100000

120000

2077/2078 2078/2079 2079/2080

Paid-up capital ('000) Reserves & Surplus ('000)

0

100000

200000

300000

400000

500000

600000

700000

2074/2075 2075/2076 2076/2077

Borrowings ('000) Deposits ('000)

0

200000

400000

600000

800000

1000000

1200000

2077/2078 2078/2079 2079/2080

Borrowings ('000) Deposits ('000)

0

200000

400000

600000

800000

1000000

1200000

2074/2075 2075/2076 2076/2077

Loans & Advances ('000) Net Interest Income ('000)

0

500000

1000000

1500000

2000000

2077/2078 2078/2079 2079/2080

Loans & Advances ('000) Net Interest Income ('000)

-5000

0

5000

10000

15000

20000

25000

30000

35000

2074/2075 2075/2076 2076/2077 2077/2078 2078/2079 2079/2080

Net Profit ('000)

***IPO NOTICE OF COMPANY*** Manushi Laghubitta Bittiya Sanstha Limited will be issuing 3, 93,750 units worth Rs 3.93 crore as Initial Public

Offering to the general public from (Shrawan 27-31, 2078).

Particulars Quantity (Units) Public Issue Size 3,93,750

-Allotted for Employees (0.5% of Public Issue Size) 5,469

-Allotted for Mutual Funds (5% of Public Issue Size) 19,688

-General Public 3,68,593

Out of the offered 3, 93,750 units; 0.5% of the issued capital i.e. 5,469 units have been set aside for the employees

of the company and 5% of the total offered shares to the general public i.e. 19,688 units have been set aside for the

mutual funds. The remaining 3, 68,593 units are for the general public. Nepal SBI Merchant Banking Limited has

been appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units

and a maximum of 1,000 units.

After the issuance of 3,93,750 units worth Rs 3.93 crore IPO shares the general public i.e 36% of total capital which

will together raise its paid-up capital to Rs 10.93 crore and the promoter/public ratio will be 64:32.

CARE Ratings Nepal Limited (CRNL) has assigned the issuer rating of “CARE -NP B+ (Is) [Single B Plus (Issuer)]” to

Manushi Laghubitta Bittiya Sanstha Limited (MLBSL). Issuers with this rating are considered to offer a high risk of

default regarding timely servicing of financial obligations, in Nepal.

Conclusion

The total shares floated by Manushi Laghubitta Bittiya Sanstha Limited is 393,750 units, of which only 368,593 units

are available to the general public after the allocation of shares to staff and mutual fund.

If we see the recently concluded IPO of Manakama Smart Laghubitta and Union Life, more than 21 lakh applicants

applied for the company IPO and Nepal SBI Merchant Banking Limited has been appointed as the issue manager for

the IPO issuance. According to the issue manager, 5, 81,633 applicants have applied for a total of 79, 02,510 units.

Thus, the issue is already oversubscribed over 21.43 times on the first day itself. So, The 10 kitta rule exists for IPO;

applicants will be lucky enough to get the shares of Manushi Laghubitta Bittiya Sanstha Limited. Hence, if the same

number of applicants (or more) who applied for the Manakamana Smart and Union Life’s IPO apply for this issue

then there is a high probability of lottery for 10 units. Since the minimum unit is 10, it is advisable to apply only 10

units in the IPO issue of Manushi Laghubitta Bittiya Sanstha Limited.

64%

36%

Share Holding after IPO Issuance

Promoter Share Public Share

The following table shows the recent total dividend proposed by companies from the profit of 2077/78.

S.N. Symbol Company Dividend (%)

Bonus Cash Total

1 LUK Laxmi Unnati Kosh 0 25 25

2 LEMF Laxmi Equity Fund 0 35 35

3 NIBLPF NIBL Pragati Fund 0 50 50

4 NIBSF1 NIBL Samriddhi Fund 1 0 35 35

5 NIBLSF NIBL Sahabhagita Fund 0 50 50

6 NICGF NIC Asia Growth Fund 0 30 30

7 NICBF NIC ASIA Balanced Fund 0 30 30

8 NADDF NIC Asia Dynamic Debt Fund 0 10 10

9 KEF Kumari Equity Fund 0 5 5

10 SEF Siddhartha Equity Fund 0 30 30

11 SIGS2 Siddhartha Investment Growth Scheme-2 0 30 30

12 NICACL NIC Asia Capital Limited 0 48 48

13 SPDL Synergy Power Development Limited 10 0.5263 10.5263

Growing our hard-earned money should be simple and accessible to everybody, so that each of us is able to live the life we

desire. With this objective, we ensure we gain an in-depth understanding of each individual’s aspirations and ambitions so that

we are able to recommend the right investment solution. We encourage people to link their investments to specific life goals so

that they are able to realize these goals meticulously and with ease.

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Management Services is the Portfolio Management division of Aakash Capital that helps you access the equity market in Nepal.

Portfolio Management Service brings you a whole range of investment products,

from which your portfolio manager puts together your optimal portfolio. We take

into account your financial goals, time horizon, risk appetite and investment outlook.

Choose a solution that fits your needs

Disclaimer and important information: This document has been prepared by Aakash Capital Limited for information and

illustration purpose only. The information provided in this document is subject to change. While this information has been

obtained from sources believed to be reliable, Aakash Capital Limited is not liable for erroneous information obtained from t he

sources. Aakash Capital Limited, its directors and employees are not liable/responsible for any direct, indirect or consequential

loss arising from use of this document or its contents. Past performance is no indication of future results. Aakash Capital i s

regulated by Securities Board of Nepal. This document may not be reproduced, distributed or published by any person for any

purpose without Aakash Capital Limited’s prior written consent.

Aakash Capital Limited

4th Floor, Trade Tower, Thapathali, Kathmandu, Nepal

Tel: 01-5111145

Email: info@aakashcapital.com.np

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