Nepal floods impact: Emami shares slip 4%, NHPC down 1%; what investors need to know

Shares of companies with exposure to Nepal were trading lower amid the massive flash floods that have caused widespread destruction in the country.

The floods have disrupted normal operations across several areas, with casualties reported and several people, including security personnel and foreign tourists, still missing.

The disaster has also damaged roads, bridges and power infrastructure, while disrupting transport, communications and other essential services, raising concerns over business activity and supply chains in the affected regions.

In the afternoon trade, Emami shares were trading in negative territory.

The stock slipped as much as 4% to hit a low of ₹385.25 on the NSE. At 12:35 PM, the stock was down 3.91% at ₹385.75 on the NSE.

NHPC, too, was trading lower. The stock traded over 1% lower at ₹75.41 on the NSE.

Stocks in spotlight

The business has a sizeable manufacturing and distribution presence in the country.

According to publicly available information, Dabur Nepal reported NPR 15.06 billion in operating revenue in FY25 and has a large manufacturing and distribution footprint.

According to publicly available information, Varun Beverages (Nepal) reported operating revenue of around NPR 8.55 billion in FY25, making Nepal a notable overseas market for the company. VBL has local manufacturing operations in the country and is PepsiCo’s bottling partner there.

However, this is project/development exposure rather than a major current revenue contributor, so the impact from any disruption would primarily be on project execution and timelines.

However, compared with Dabur, VBL and Asian Paints, the Nepal business is less material to the overall company, so the earnings impact from disruptions is likely to be more limited.

However, Nepal is a relatively small part of Marico's overall business, making the direct earnings impact from any prolonged disruption comparatively limited.

Other stocks in focus

Besides, other Indian FMCG companies such as Hindustan Unilever (HUL) and Britannia Industries also have business exposure to Nepal through subsidiaries, manufacturing operations or distribution networks.

While Nepal is a relatively small contributor to their overall revenues, any prolonged disruption could weigh on local sales, manufacturing and supply chains.