PACRA Maintains Entity Ratings of Optimus Capital Management (Pvt.) Limited
Optimus Capital Management (Pvt.) Limited ("Optimus Capital" or "The Company") mainly provides the services of equity brokerage while corporate finance also adds to the topline. With an average market share of ~1.8%, the clientele of the Company is more tilted towards institutions and corporates which constitutes ~93% of the brokerage revenue. The Company has earned brokerage revenue of ~PKR 117mln during 1HFY22 showing a significant increase as compared to FY21 ~PKR 120mln. However, ~50% of the revenue originates from a block trade deal while concentration in revenue also appears. The bottom-line remained side by side with the market performance in FY21; however, improvement has been observed owing to the block trade deal execution in 1HFY22. Assigned ratings incorporate Company’s zero leveraged capital structure and sound liquidity profile as reflected by current assets of 4.4x of the current liabilities while the equity at ~PKR 367mln at end-Dec’21 depicts adequate capitalization. The market risk is negligible as the Company does not invest in equity securities; however, the access liquidity is parked in PIB’s. The Company has a lean organization structure with most of the heads reporting to CEO. The rating incorporates seasoned management and adequate control framework which may be improved further with the presence of a dedicated risk and compliance department. Moreover, the governance framework may be enhanced further by increasing the board size, induction of independent directors, segregating the position of CEO from Chairman of the Board and increased oversight. As part of the long-term plan the Company intends to capture retail clientele with the use of digital platforms.
Going forward, sustainability and improvement in core revenue and profitability remains critical. Meanwhile, upholding strong internal controls, retention of key management and diligent monitoring of risk are important.
Optimus Capital Management (Pvt.) Limited holds the Trading Rights Entitlement Certificate from the Pakistan Stock Exchange and licensed by the Securities & Exchange Commission of Pakistan. Previously known with the name of Millennium Capital Management (Pvt.) Limited the Company was incorporated in 2004 and the name was changed to Optimus Capital Management (Pvt.) Limited in 2011. Optimus Capital Management (Pvt.) Limited is a wholly owned subsidiary of Optimus Holdings (Pvt.) Limited. The CEO, Mr. Asif Ali Qureshi and Mr. Jawad Amjad own 80% and 20% of Optimus Holdings, respectively. The sponsors possess more than ~20 years of the financial market related experience. The board is comprised of two executive directors including the CEO Mr. Asif Ali Qureshi and the Managing Director Mr. Muhammad Mohsin Ahsan.