Press Release
Date: 29-Oct-21
PACRA Assigns Initial Broker Fiduciary Rating to Optimus Capital Management (Pvt.) Limited

Rating Details Rating Type BFR
Dissemination Date Current (29-Oct-21 )
Action Initial
Rating BFR 3++
Outlook Stable
Rating Watch -

Rating Rationale Factor Comment
Ownership Optimus Capital Management (Pvt.) Ltd. is a wholly owned subsidiary of Optimus Holdings (Pvt.) Limited. Mr. Asif Ali Qureshi and Mr. Jawad Amjad own 80% and 20% of Optimus Holdings, respectively.
Governance The Company has two member Board, Mr. Asif Ali Qureshi and Mr. Mohsin Ahsan.
Management and Client Services The Company has an sound organizational structure with well experienced management team. The Company has well developed research department covering ~80% of the KSE100.
Internal Controls and Regulatory Compilance The Company has in-house internal audit department which ensures the implementation of the policies. The Company has formulated employee confidentiality agreement and insider trading guidelines.
Business Sustainability The revenue is majorly concentrated in the brokerage segment. The Company does not operate any proprietary book hence, less exposed to market risk.
Financial Sustainability The Company has a leverage free capital structure and sizable liquid assets against trade related liabilities.

Key Rating Drivers The assigned rating reflects the Optimus Capital Management (Pvt.) Limited’s (or the "Company”) strong internal control and risk management framework, good quality of management and well managed client service. The rating draws strength from the experienced profile of the CEO, Mr. Asif Ali, who has been associated with the capital markets for over 25 years. The rating also takes into account the Company’s acclaimed research, adequate market share and good regulatory compliance. On governance front, room for improvement exists in board size to avoid repetition of common committee members, presence of independent director would add to governance levels. The rating is dependent on the Company’s ability to compliment its revenue base by developing its advisory and consultancy revenue streams. The Company is also in process of strengthening its retail penetration. For this, the Company is replacing its technological plate form with advanced one and also hired a head of online trade and sales. During FY21, the Company earned PAT of PKR 21mln(FY20: PKR (6)mln). The rating also takes comfort from leverage free capital structure. The equity base of ~PKR 339mln, as at end-Jun’21, provides cushion against potential losses. The rating would remain dependent on sound internal controls, well managed client relationship, strong market share, and risk management framework. Retention of key management, regulatory compliance and external control environment will remain imperative. Further, rational diversification of business activity may provide support to the company’s overall financial risk profile.

About the Entity
Legal Structure Private Limited
Year of Establishment 18-Mar-04
Type of License Trading and Self-clearing
Majority Ownership Optimus Holdings (Pvt.) Limited

Regulatory Disclosures Analyst Applicable Criteria Related Research
Muhammad Junaid

Methodology | Broker Fiduciary Rating | Jan-21

Sector Study | Brokerage & Securities | Jan-21

Disclaimer This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA. The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.