PACRA Maintains Entity Ratings of Ghandhara Nissan Limited : AsiaNet-Pakistan

PACRA Maintains Entity Ratings of Ghandhara Nissan Limited

December 13, 2019 | General Business News | Share:

Lahore, December 13, 2019 (PPI-OT): Ghandhara Nissan Limited (GNL) operates in the truck segment of the automobile sector. Presently, the company deals in Chinese and European brands. Company’s performance was diluted owing to discontinuation of UD Trucks, which they managed to beef up with other alternative products. Ghandhara Nissan has solidified its position in the market through the launch of JAC X-200 and Renault Trucks, recently.

The company is also working to come into the passenger car segment. Keeping in view of the current market scenario the turnout of these initiatives is pivotal. The current economic slowdown and rupee devaluation though added pressure on the business profile of the company. Majority ownership of the company is held by Bibojee Group of Companies. Their business acumen is further enriched by the group’s stake in the country’s leading tyre manufacturing company. Foreign players are also taking interest in the local market. The company had arranged long term debt for its expansion project.

The ratings are dependent on upholding of the company’s business as well as financial risk profile. Two key elements are company’s stance on long term debt for potential projects and working capital management. Moreover, management’s ability to sustain its market share while benefiting from positive demand fundamentals is crucial.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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Category: General Business News