On Monday, NEPSE recorded a massive share turnover of Rs. 6.47 billion— and the hydropower firms accounted for over Rs. 4.33 billion, or close to 67% of total trading volume. But this is no fluke. For over a month, the hydropower stocks have been dominating the overall market trading by a huge margin.
More Hype, Less Dividend?
Although hydropower companies form the lion’s share of NEPSE listings, few of them distribute regular dividends. Instead, their stock prices are underpinned more by market sentiment and speculative funds rather than earnings.
What’s Behind the Hydropower Rally?
- Companies with medium paid-up capital are now more in favor compared to companies with small capital.
- Right share announcements are driving prices upwards.
- Lock-in period expiry is generating interest in some hydropower stocks.
Top Hydropower Stocks That Surged on Monday
1. Joshi Hydropower
- Got approval to issue 65% right shares
- Share price surged nearly 25%, closing at Rs. 383
- 61.28 million shares listed
2. Panchakanya Mai Hydropower
- No past record of dividend or right share
- Investors attracted due to its moderate capital
- Hit circuit limit at Rs. 395.14 with 11 million shares listed
3. Barun Hydropower
- Recently went into book closure for right shares
- After peaking at Rs. 600, stock closed at Rs. 383 on Monday
4. Panchthar Power Company
- Around Rs. 1 billion in paid-up capital
- Gained attention as part of mid-cap hydropower surge
- Previously gave 7% bonus shares, now trading actively
5. Radhi Power Company
- Reached Rs. 865 recently; closed at Rs. 825 on Monday
- Holds large stakes in other listed hydropower firms like Dordi Khola and Rapti Hydro
- Lock-in period has expired (or nearing expiry), boosting interest
Dividend Performers and Hidden Gems
6. Kalika Power
- One of the few dividend-paying hydropower companies
- Regularly issues 7–15% bonus shares
- Share price increased nearly 5% on Monday
7. Shivashree Hydropower
- Proposed right shares at 1:1 ratio
- Gaining popularity due to low share price and mid-cap structure
- Closed at Rs. 245 on Monday
Stocks on the Watchlist
8. Sanima Middle Tamor
- Promoted by Sanima Mai Hydropower
- 33.3 million shares listed; lock-in ends in a year
- Strong influence from parent company’s value, currently priced at Rs. 520.88
9. Union Hydropower
- No dividend history, but recently approved investment in new hydropower ventures
- Holds 1.45 million promoter shares in Rapti Hydro; its lock-in ends next month
- Closed at Rs. 426, rising 3%
10. Singati Hydro Energy
- Investors are optimistic that extra earnings from above-par share sales could result in dividends
- Issued 1:1 right shares; listed shares now total 29 million
- Recently auctioned unsold right shares at Rs. 146 cutoff
- Investors wish that further gains from superior-than-average sales of shares can translate into dividend payments
Is the Hydropower Hype Sustainable?
The hydropower sector is a favorite among investors, fueled not by good fundamentals or consistent dividends, but by speculation, news of right shares, and post-lock-in glamour. Investors need to watch out for risks, especially in those with no track record of returns.
Nevertheless, with more than two-thirds of activity in NEPSE relating to hydropower, one thing is certain — the industry is presently fueling the heartbeat of the Nepali stock market.
