Price history of Shikhar Insurance (SICL) in the Nepalese stock market
October 18, 2019 | Investopaper
Shikhar Insurance is the leader in the list of non-life insurance companies in Nepal. It is one of the prime companies in the non-life insurance sector. Here, we will discuss the price history of Shikhar Insurance in the Nepalese stock market.
The graph below shows the high, low and average price of Shikhar Insurance from 2013 to October 17, 2019. As seen in the graph below, Shikhar Insurance (SICL) stock was trading at the average price of Rs. 520 in 2013. In the following year, the price went past 1000 mark and maintained the same momentum in 2015 too.
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As the bullish trend heated the share market in 2016, SICL stock surged drastically to Rs. 4,300. It remained as the top-performing stock during the bullish period. Investors pushed the price of SICL from the low of Rs. 356 in 2013 to a high of Rs. 4,300 in 2016. The market valuation skyrocketed as the 40 percent bonus and 50 percent right in 2013, a 20 percent bonus in 2014, a 20 percent bonus share in 2015 and a 24 percent bonus share in 2016 was adjusted in the market price.
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However, the market gained consciousness at the end of 2016 and then the price fall was also as sharp as price gain not only for SICL stock but many other stocks. The price of SICL continued to fall along with the market. After the adjustment of a 60 percent bonus share, the price fell to an average of Rs. 1,936 in 2017. In the following two years, the price has fallen further to Rs. 981 and Rs. 836 on average.
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The price history of Shikhar Insurance (SICL) is shown in the chart below:
Price History of Shikhar Insurance (SICL)
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Investment return from SICL after 2013
As dividends, investors received only bonus shares from the year 2013. In the current fiscal year 2018/19, the company didn’t propose a dividend to the shareholders. The dividend distribution from 2013 is shown in the table below:
| S.No. | Year | Bonus share |
| 1 | 2013 | 40 |
| 2 | 2014 | 20 |
| 3 | 2015 | 20 |
| 4 | 2016 | 24 |
| 5 | 2017 | 60 |
| 6 | 2018 | 29 |
| 7 | 2019 | – |
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With the issue of bonus share, the capital also increased by more than 6 fold from the year 2013. As of 2013, the capital stood at Rs. 17.50 crores. The company has grown its capital to Rs. 105.73. The capital increment is shown in the table below:
| S.N | Year | Paid-Up Capital (Rs. ‘crores’) |
| 1 | 2013 | 17.50 |
| 2 | 2014 | 29.78 |
| 3 | 2015 | 35.77 |
| 4 | 2016 | 50.99 |
| 5 | 2017 | 81.77 |
| 6 | 2018 | 105.73 |
| 7 | 2019 | 105.73 |
So what would have happened if an investor had purchased the shares of Shikhar Insurance in 2013?
Average price of SICL in 2013= Rs. 520
Current share price of SICL (October 17, 2019)= Rs. 719
Increment in capital/No. of Shares= 6.04 times
Hence, the increment in Investment Value= (719/520)*6.04=8.29 times
The investor would have increased the initial investment by 8 fold if s/he had invested in SICL stock in 2013. So, if you had invested Rs. 1 lakh in SICL in 2013, you would have Rs. 8.29 lakh as of now.
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