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Which company should I invest in as my first investment?

I have around 1 lakh and I’d like to invest. I am playing it a little safe and hoping to invest in a blue-chip company. My top three picks in no order are as follows:

BNT
HDL

STC

Which one should I invest in or if any other one according to you?


View on r/NepalStock by darthsamip


10 COMMENTS

  1. **BNT:** EPS stands at 564.55, PE at 21.3, Revenue growth at 46.88 YoY, the fair value with 50% MOS would be around 9000 but currently trading at 12000, typically gives cash dividend with payout ratio of around 10%.

    **HDL:** EPS stands at 69.50, PE at 49.3, Revenue growth at 16.54 YoY, net profit reduced and stands at 1.33 YoY, trading highly above fair value. It has a history of giving high dividend to its investor which has started affecting its EPS as its growth is stalling in recent years.

    **STC:** EPS stands at 14.90, PE at 235.9, Revenue growth at -31.08 YoY, net profit reduced and stands at -21.15 YoY, trading highly above fair value. It has a history of giving decent dividend to its investor.

    I gave you some glimpse of these three companies now analyze by yourself. There are so many undervalued stocks which are trading at discounted rate.

  2. These companies are already overvalued even In this bear market.
    Go for microfinance companies which have low peg,high eps.(SLBBL,SWBBL,ALBSL). Personally I would suggest ALBSL,Low capital,higher earnings, room for growth.However risk are always associated in stock investment.

  3. If you compare these companies’ price before covid & now, their price is still higher.
    Now, one could argue current price of these companies is justifiable since they are blue chip.

    But, I personally wouldn’t invest in them right now. Microfinance, insurance & commercial bank sectors would be safe for now. Of course, things will change in comming days.

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