On Sunday, the company’s shares hit a negative circuit within just an hour of trading, marking a sharp reversal in fortune. This sudden decline has left investors reeling, with the stock losing 10% of its value in a single trading session.

Despite the company’s financial statement showing signs of weakness, the share price had been on a positive trajectory. However, the tide turned on Sunday, leaving 137,000 shares of Nepal Finance Company up for sale on the secondary market—yet with no buyers in sight. The lack of interest has raised concerns about the company’s long-term viability, as it appears to be falling out of favour with investors.

Financially, Nepal Finance’s performance has been underwhelming. The company reported a net profit of NPR 1 crore 81 lakh last fiscal year, a 10.01% decline from the NPR 2 crore 1 lakh net profit of the previous year. As of June, the company’s earnings per share (EPS) stood at a mere NPR 2.48, while the net worth per share was NPR 137.52. With a Price-to-Earnings (PE) ratio of 360.15, the stock appears significantly overvalued, further contributing to its unappealing profile for potential investors.

As Nepal Finance continues to struggle, the company’s future in the stock market looks uncertain, with investors rapidly losing confidence. The current situation underscores the challenges faced by financial institutions in maintaining investor interest amidst fluctuating market conditions and subpar financial performance.