Rating Details	Rating Type	BFR
	Dissemination Date	Current (21-Nov-24 )	Previous (21-Nov-23)
	Action	Maintain	Upgrade
	Rating	BFR 3+	BFR 3+
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	Mr. Muhammad Owais is the primary sponsor with ~97% of the ownership. Mr. Owais has been injecting capital into the Company with increasing quantum of operations. The business acumen of the primary sp
	Governance	The Company has a small board comprising three directors. The presence of an independent director and board committees enhances oversight.
	Management and Client Services	The ratings draw comfort from an experienced and qualified management team. Segregation of key management roles would improve the organizational structure further. Client services are considered adequ
	Internal Controls and Regulatory Compilance	Separation of internal audit and compliance functions is present, providing a good control framework. Oversight may be further improved by the inclusion of an independent director on the board audit c
	Business Sustainability	The Company has increased its market share from ~1.80% in FY23 to ~2.71% in FY24, reflecting a growth of ~50.56%. This growth is also evident in the Company's brokerage revenue, which surged by 180%,
	Financial Sustainability	The Company has an adequate capitalization level with regulatory Liquid Capital Balance (LCB) standing at ~PKR 134mln at end-Jun'24. The Company's equity stood at ~PKR 386mln at end-Jun'24.

Key Rating Drivers

Spectrum Securities Limited ('SSL' or the 'Company') has outperformed the market during FY24 due to the equity injection at the right time to take advantage of the market uptick. Going forward, it is imperative from a ratings perspective to maintain topline growth, revenue diversification, and profitability. Maintenance and improvement in market share remains important. Moreover, retention of key management personnel and further separation of management roles remain critical.

About the Entity
	Legal Structure	Public Limited
	Year of Establishment	27-Oct-14
	Type of License	Trading and Self-clearing
	Majority Ownership	Mr. Muhammad Owais | ~97%

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Hassaan Ahmad Hassaan.Ahmad@pacra.com +92-42-35869504 www.pacra.com	Assessment Framework | Broker Fiduciary Rating | Jan-24	Sector Study | Brokerage & Securities | Jan-24

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.