r/NepalStock • u/sockholder • 3d ago

Market CHCL at it's all time low price level (unadjusted)

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This is a natural consequence of the devastating flood, which damaged revenue generation at 3 of its 4 operating hydropower projects. Sanjen can’t sell electricity because of damage to its transmission and substation, while Rasuwagadhi and Chilime have suffered serious damage to the projects themselves.

We’ve seen significant damage to hydropower projects from natural calamities over the last few years. The future is uncertain, and almost every listed hydropower company is exposed to natural disasters. The way to survive is diversification and insurance.

Under such circumstances, will we see a valuation rerating across the hydropower sector?

6 Upvotes

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u/No_Librarian_6856 3d ago

upcl better hola

1

u/dry-ice 3d ago

RSML yes, Chcl not really, don’t spread FUD like media outlets

1

u/sockholder 3d ago

I hold the opinion that for CHCL the damage from the flood is priced in. Since CHCL is well insured and diversified, we should see a reversal soon....i didn't exactly get your comment though, valuation re-rating in RSML due to the flood?

2

u/dry-ice 3d ago

Nope RSML is swept away(obviously it was fully insured), Chcl will be back in 5-7 months, as for senjen it’s a transmission issue;
Main loss is operational loss but like you said, it’s probs priced in at this valuation

5

u/sockholder 3d ago

RSML bhaneko Reliance Spinning Mills ho bro, you mean RHPL?

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u/dry-ice 1d ago

Yess my b

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u/thementalist0000 3d ago

RSML swept away when?