ICRA Nepal assigns [ICRANP] A4+ to the short-term loans of Jagdamba Cement Industries
Tue, Jul 30, 2019 1:31 PM on Corporate, Credit Rating, Latest,
ICRA Nepal has assigned the short-term rating of [ICRANP] A4+ (pronounced ICRA NP A four plus) to the short-term loans of Jagdamba Cement Industries Private Limited (JCIPL or the company).
Credit strengths
- Experienced promoters/ management; operational synergies could arise from being part of Saurabh/Shankar Group
- Improved operational profitability in recent periods
- Long track record with high capacity utilisation
- Good demand outlook for cement in the country
Credit challenges
- Increasing gearing and low unutilised debt reduce the financial flexibility
- Stretched working capital cycle
- Intense competition
- Vulnerability to cyclicality and seasonal demand
- Risk of regulatory changes
About the company
Incorporated in February 2001, Jagdamba Cement Industries Private Limited (JCIPL) is involved in the production and sales of cement, with a licensed grinding capacity of 1,000 TPD. The shareholding of the company is held by seven individuals from two business houses of Nepal—namely, the Shankar Group and the Saurabh Group. JCIPL produces Ordinary Portland Cement (OPC) and Pozzolana Portland Cement (PPC). Its factory is located at Gonaha VDC-07 in Bhairahawa District.
