Nearly half of the hydropower companies listed on the Nepal Stock Exchange (NEPSE) have reported losses up to the third quarter of the current fiscal year. Despite this financial downturn, their shares are commanding significantly high prices. For example, shares of a loss-making hydropower company surged from Rs 144.80 per share to Rs 768.90 per share on June 20. National Hydro, another loss-incurring entity, traded its shares at Rs 144.80 on the same day. Similarly, shares of Shubham Power, also operating at a loss, were transacted at prices ranging from Rs 768. Meanwhile, Barahi Hydropower Company's shares are currently trading at Rs 724 per share.

Currently, 89 out of the 91 hydropower companies listed on NEPSE have released their financial statements for the third quarter. Among these, 46 companies reported profits while 43 reported losses; two companies are yet to disclose their third-quarter financials.

Some of these companies are newly established and have yet to begin electricity sales, while others have struggled due to revenue impacts from last year's floods. Despite their financial challenges, many of these companies' shares continue to trade at high prices in the secondary securities market. For some companies with high-priced shares, losses have been ongoing, while others are experiencing losses for the first time. Analysts caution that investors purchasing shares of consistently loss-making companies at high prices may face significant risks.

Investor Tara Prasad Fullel noted abnormal increases in the share prices of loss-making companies, attributing this trend to investors' focus on current profitability rather than the overall financial health of the companies. Fullel emphasized the importance of careful investment decisions, urging consideration of a company's overall financial situation, including the role of founder shareholders.

Among the loss-making hydropower companies, Upper Tamakoshi Hydropower Company has recorded the highest losses, totaling over 1.39 billion rupees by the third quarter of the current fiscal year. Despite these losses, its share price remains at Rs 158.20 per share. The recent listing of 100% rights shares by the company contributed to a decrease in its share price. Stock market experts advise that for long-term dividend investments, selecting companies with a track record of strong dividend payouts is advisable.