Press ReleasePACRA Maintains Broker Fiduciary Rating of AHM Securities (Pvt.) Limited
|Current (14-Jun-23 )
|The majority of stakes are owned by Mr. Adam Haji Muhammad who is also the primary sponsor. The assigned rating takes comfort from the vast experience of Mr. Adam pertaining to equity markets.
|The board is comprised of three members all representing the shareholder family members. Room for improvement exists in the board structure.
|Management and Client Services
|AHM has a seasoned management team with a lean organizational structure. AHM has provided its clients with the facility of online trading featuring universal access to their accounts.
|Internal Controls and Regulatory Compliance
|AHM has adequately implemented the control framework which commensurate with the scale of business operations. However, AHM may consider improvement in the compliance and establishing a separate risk
|The primary income stems from equity brokerage which reflected considerable improvement during FY21; however, adverse market conditions have halted the growth momentum during FY22 and 1HFY23.
|AHM has adequate capitalization level with the equity standing at ~PKR 130mln at end-Dec’22. AHM is managing a prop-book which exposes it to market risk.
|Key Rating Drivers
|About the Entity
|Year of Establishment
|Type of License
|Trading and Self-clearing
|Mr. Adam Haji Muhammad (~99%)
| Afnan Iqbal
Methodology | Broker Fiduciary Rating | Jan-23
Sector Study | Brokerage & Securities | Jan-23
|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.