Rigorous fundamental analysis of Nepal's capital markets. We go deep on sectors and companies that others overlook, and share our work openly.
Latest Research
insurance
Nepal's 14-company non-life insurance sector wrote NPR 4,491 crore in gross premiums in FY 2081/82, with penetration at just 0.74% of GDP. The sector's best underwriters earn consistent net combined ratios of 60–75%, a severe catastrophe year in FY 2082/83 exposed both the sector's exposure to flood and political-risk losses and the durability of well-structured reinsurance programs.
insurance
Neco Insurance is Nepal's sole AIG Network Partner and one of the sector's most consistent underwriters, with a net combined ratio of 70–75% maintained over four audited years. At NPR 272.9 crore in nine-month GWP (FY 2082/83), it ranks seventh among the 14 non-life insurers, with a 30-year operating history and state-owned institutional promoters including Rastriya Banijya Bank and Agriculture Development Bank.
Investments
Nepal's formal investment system spans six distinct tiers managing over Rs 1 trillion of institutional capital — from state pension giants to nascent venture funds and diaspora channels. This report maps how capital flows through the system, who controls the pools, and which structural shifts are reshaping allocation in FY 2082/83.
Investments
Citizen Investment Trust is Nepal's largest listed investment institution — a quasi-sovereign retirement fund manager with Rs 333 billion of AUM, a 35-year operating history, and a structural business model under pressure from the Social Security Fund, falling spreads, and an unresolved Rs 21 billion loan to Nepal Airlines.
Banking & Finance
A Class A commercial bank that went from 0.12% NPL to 3.99% in five years, earned a CARE A- rating the same month it switched from ICRA, and is now nine months into the sharpest earnings recovery since its 2012 commercial conversion. What the financials actually say.
Energy & Hydropower
Nepal Electricity Authority (NEA) crossed into net-exporter territory in FY 2023/24 and widened the surplus in FY 2024/25. This report works through NEA's six-year financial trajectory, the spread compression, the IPP commissioning wave, and the cross-border trade picture using NEA Annual Reports FY 2019/20–FY 2024/25 as the primary source.
Coverage
5 reports
Nepal's hydropower sector represents one of the most compelling long-term structural opportunities in South Asia — 83,000 MW of economically viable potential, a single sovereign offtaker, and an infrastructure build-out measured in decades.
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A sector undergoing painful capacity rationalization. Best-in-class operators with captive limestone, strong balance sheets, and India export optionality will emerge from the cycle with durable competitive advantages.
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Nepal's two domestic reinsurers operate behind a regulatory moat — mandatory cession rules — that is being systematically phased out. Understanding the transition timeline is the most important fact in this sector.
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Nepal's alcohol excise revenue grew +26.64% YoY in H1 FY 2024/25, and Carlsberg committed Rs 10 billion to expand Gorkha Brewery in April 2026. Yet the listed equity universe gives investors only two ways in — HDL and SAGAR. The sector is structurally growing and largely inaccessible through the front door of NEPSE.
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Nepal's 14 life insurers manage a NPR 80,449 crore life fund — growing at a 22.4% five-year CAGR — across 5.4 million active policies. Endowment products dominate at 87.4% of sector GWP. The NIA's 2025 investment directive flipping government securities from a 35% ceiling to a 35% floor is the most consequential regulatory change in the sector.
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Nepal's 14 non-life insurers wrote NPR 4,491 crore in gross premiums in FY 2081/82, with penetration at just 0.74% of GDP. The sector's best underwriters earn net combined ratios of 60–75%, generating underwriting profit before investment income on a float that costs them nothing to hold.
View researchOur Approach
Our investment philosophy is rooted in timeless principles of fundamental analysis, adapted for the unique characteristics of Nepal's emerging market. We believe that patient, disciplined research can uncover opportunities that others overlook.
“The market is a pendulum that forever swings between unsustainable optimism and unjustified pessimism. The intelligent investor is a realist who sells to optimists and buys from pessimists.”Read our full philosophy
We focus on sustainable value creation, not short-term market movements. Our research horizon extends years, not quarters.
We dig deep into financial statements, competitive dynamics, and management quality to understand true business value.
We form our own conclusions through rigorous analysis, unswayed by market sentiment or popular opinion.
We seek to understand intrinsic value and pay a price that provides protection against uncertainty and our own errors.