Why to invest in Hydropower sector?
Sun, Jun 26, 2016 10:10 AM on Latest, Experts Speak, Featured,
On the last trading day of the last week, the hydropower sector at Nepal Stock Exchange Limited (Nepse) increased by 40.83 points. From past few trading days, the charm towards hydropower is increasing. Here is the opinion of our expert about investing in Hydropower.
Sanjeev Neupane
Managing Director of Api Power Company Limited
Hydropower sectors is a very safe sector to invest in both as a developer and investor.
The return in hydropower sector is fixed. Marketing is also not required. The demand of electricity will always be in increasing trend. The electricity generation work is related to the development of the country. As a developer it is very safe to make an investment in hydropower sector.
As an investor as well investing in hydropower sector is safer than investing in any other sector. Banking and Insurance sector are volatile investment. The return of the hydro sector is good and the return will increase after the loan taken from the bank to construct the hydropower project is settled.
But before making an investment, investor should inquire about the financial condition, initial growth, future investment plans of the company.
At present, the charm towards hydropower sector has increased. There are very limited number of companies in hydropower sector that are being traded at Nepal Stock Exchange Limited. New companies in the same sector are making entry at Nepse which will further lead to healthy competition and survival of the fittest.
There might be some manipulation or fraud in the company belonging to the hydropower sector as there are no controlling bodies or proper guidelines for this sector.