Jagadamba Hire Purchase Limited, promoted by the renowned business group Shankar Group, has shown impressive improvement in its operational performance. In the fiscal year 2024/25, the company’s loan portfolio increased by 34% and net profit rose by approximately 102%.
The growth has been driven by the company’s expansion into low-cost consumer electronics and mobile segments, improved market liquidity, and reduced interest expenses. In FY 2024/25, the company invested NPR 153.20 million in loans.
The company’s interest coverage ratio stands at 1.83x, while nearly 50% of its total loans are concentrated in Bagmati Province. Non-performing loans rose to 4.42%, and loans overdue for more than 90 days reached 6.38%.
Jagadamba Hire Purchase has also built a reserve fund of NPR 24.20 million, with a gearing ratio of 1.43x, providing ample room for future business expansion.
Infometrics Nepal has assigned ‘IRN BB’ for the company’s long-term bank facility and ‘IRN A4’ for its short-term bank facility. While the experience of Shankar Group and leadership of Sahil Agrawal has provided financial flexibility, geographic concentration and rising non-performing loans remain key challenges for the company.
