Rating Details	Rating Type	BFR
	Dissemination Date	Current (15-Dec-23 )	Previous (16-Dec-22)
	Action	Maintain	Maintain
	Rating	BFR 1	BFR 1
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	The assigned rating takes into account the Company's affiliation with 'Arif Habib Group', one of the preeminent conglomerates in the country. AHL is primarily owned by Arif Habib Corporation (~73%) wh
	Governance	A strong governance framework exists with seven directors present, including two independent and four non-executive directors. The board is chaired by Mr. Zafar Alam, an independent director. Board co
	Management and Client Services	The management team comprises seasoned professionals with proper departmentalization and defined roles. The client services offered by the Company are also amongst the top in brokerage houses for clie
	Internal Controls and Regulatory Compilance	AHL has a strong control environment supported by in-house internal audit department reporting directly to the board Audit Committee. Moreover, separate departments exist for Compliance and Risk Manag
	Business Sustainability	The Company managed to outperform the market during 1QFY24 by growing its topline by ~35% as compared with market volume growth of ~31%, resulting in improved market share of the Company. The topline
	Financial Sustainability	AHL's leveraging stood at ~51% at end-Sep'23, increased from ~32% at end-Jun'23. Finance cost is effectively managed through core and non-core income, maintaining profitability margins. The Company ha

Key Rating Drivers

Arif Habib Limited ( 'AHL' or the 'Company') has a leading market presence in the brokerage space. The Company introduces innovative products and services for its customers on a regular basis, maintaining and improving its market share on a YoY basis. Moving forward, it is imperative from a ratings perspective to maintain topline growth, revenue diversification, and profitability. Moreover, retention of key management personnel and further diversification to resist market shocks remain critical.

About the Entity
	Legal Structure	Listed
	Year of Establishment	07-Sep-04
	Type of License	Trading and Self-clearing
	Majority Ownership	Arif Habib Corporation Limited

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Hassaan Ahmad Hassaan.Ahmad@pacra.com +92-42-35869504 www.pacra.com	Methodology | Broker Fiduciary Rating | Jan-23	Sector Study | Brokerage & Securities | Jan-23

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