ICRA Nepal provides rating of LBBB+ and A2 to long term and short term loans of Hnasraj Hulaschand and Company; Company authorized dealer of Bajaj

ICRA Nepal has assigned a long-term rating of [ICRANP] LBBB+ (pronounced ICRA NP L triple B plus) to the long-term loans of Hansraj Hulaschand and Company Private Limited (HHC). ICRA Nepal has also assigned a short-term rating of [ICRANP] A2 (pronounced ICRA NP A two) to the short-term loans (including non-fund-based limits) of HHC. 

 Credit strengths

• Long track record and strong market presence
• Diverse and sizeable revenue base
• Healthy margins and comfortable financial profile
• Part of the Golchha Organisation

Credit challenges

• Intense competition and high dependence on variants from a single model
• Working capital intensive operations
• Increased taxes, revised financing norms and high borrowing rates could impact revenues

About the company   

Established in 1959, Hansraj Hulaschand and Company Private Limited (HHC) is the authorised dealer of Bajaj twowheelers and three wheelers, KTM brand two-wheelers, TVS brand tyres and Servo lubricants for Nepal. Its registered office is in Biratnagar, Morang. The company operates through three showrooms of its own in Kathmandu (one Bajaj showroom and two KTM showrooms), along with 148 regional dealerships. HHC is a part of the Golchha Group, which has a long and diverse presence across various manufacturing and trading sectors in Nepal. As of now, the company’s shares are held by 19 members of the Golchha family with a major stake held by Mr. Shekhar Golchha (53.8%) while the rest of the shareholders hold 3.75% or less. Mr. Shekhar Golchha is the Chairman of the company.

Key financial indicators 

Source: Company data

Instrument details 

 Source: www.icranepal.com