ICRA Nepal assigned [ICRANP]LB+/A4 to Omni Motors Private Limited
Sun, May 17, 2020 1:05 PM on Credit Rating, Latest,
ICRA Nepal has assigned a long-term rating of [ICRANP] LB+(pronounced ICRA NP L B plus) to the long-term loans of Omni Motors Private Limited (OMPL). ICRA Nepal has also assigned a short-term rating of [ICRANP] A4 (pronounced ICRA NP A four) to the short-term loans (including non-fund based limits) of OMPL.
Credit strengths
- Part of Omni Group with experienced promoters
- Growing brand recognition of the Bharatbenz vehicles
Credit challenges
- Delays in payment of bank obligations
- High working capital intensity could witness further stress amid lockdown
- Intense competition in the industry and low track record
- Limited presence within CV segment leading to low revenue diversification
- Tight liquidity and high borrowing rates could deter final customers thus impacting revenue growth
- Analytical approach
About the company
Established in 2013, Omni Motors Private Limited (OMPL) is the national dealer of Bharatbenz commercial vehicles for Nepal. OMPL’s registered office is in Birgunj, Parsa-13 and it currently operates through 10 self-owned showrooms www.icranepal.com3around the country. The company is owned by five individuals: Mr. Rajindra Kabra, Mr. Dipankar Kabra, Mr. Vinay Kabra, Mr. Udayan Kabra and Mr. Sandeep Kumar Mohta. Mr. Rajindra Kabra is the Chairman of the company.
Source: ICRANEPAL
