November 19, 2021 | Investopaper
The market capitalization of a company refers to the total market value of the outstanding shares of that company. So, basically, the market capitalization (also known as market cap or market value) of a company is obtained by multiplying the market price per share by the number of outstanding shares of that company. This calculation will help you to determine the size and the strength of the company in the market.
Market capitalization can be helpful to diversify your portfolio because it is essential to pick different-sized companies to minimize the risk associated with your investment. One of the basic features of blue-chip stocks is large market capitalization. On the other hand, the company with small market capitalization can become the most valuable companies in your portfolio if they become successful. But they have a high risk compared to large-cap companies.
Market cap is also a useful metric to determine the changing position of a company in the stock market whether it be large, medium, or small companies. Likewise, it also reflects the overall market behavior and sentiment too. For instance, when the total market cap of a Nepalese stock market increases on a daily basis for a time period, it is understandable that the market is on an upward trend and vice versa.
Market Capitalization Of Finance Companies In Nepal
The table below presents the finance companies in Nepal along with the share price, listed shares, and market capitalization.
|S.N.||Stock Name||Stock Symbol||No. Of Listed Shares||Share Price (Rs.)||Market Capitalization (Rs ‘Arba’)|
|1||Manjushree Finance Ltd.||MFIL||9,653,949||1180||11.39|
|2||ICFC Finance Limited||ICFC||10,242,658||900||9.22|
|3||Gurkhas Finance Ltd.||GUFL||8,679,937||895||7.77|
|4||Goodwill Finance Co. Ltd.||GFCL||8,672,000||810||7.02|
|5||Pokhara Finance Ltd.||PFL||9,631,459||629||6.06|
|6||Reliance Finance Ltd.||RLFL||9,156,577||611||5.59|
|7||Shree Investment Finance Co. Ltd.||SIFC||8,901,349||582||5.18|
|8||Central Finance Co. Ltd.||CFCL||8,810,358||582||5.13|
|9||Guweshowori Merchant Bank & Finance Co. Ltd.||GMFIL||8,640,000||563.9||4.87|
|10||Best Finance Company Ltd.||BFC||8,289,138||538||4.46|
|11||Janaki Finance Ltd.||JFL||6,004,112||720||4.32|
|12||Progressive Finance Limited||PROFL||8,001,000||421||3.37|
|13||Nepal Finance Ltd.||NFS||4,934,964||593||2.93|
|14||Samriddhi Finance Company Limited||SFCL||5,459,409||515||2.81|
|15||Multipurpose Finance Company Limited||MPFL||4,000,000||539.8||2.16|
The share price is of November 18, 2021 [Mangsir 2, 2078 BS]. The total listed shares of the finance companies are of Mid-October 2021 [Ashwin end, 2078 BS]. At current, the share price, as well as listed shares, may vary along with the market capitalization.
As computed in the table, Manjushree Finance has the highest market capitalization among the finance companies with Rs 11.39 Arba. ICFC Finance is second in terms of market value with Rs 9.22 Arba. Likewise, Gurkhas Finance has a market cap of Rs 7.77 Arba.