Rating Details	Rating Type	BFR
	Dissemination Date	Current (29-Nov-24 )	Previous (30-Nov-23)
	Action	Maintain	Initial
	Rating	BFR 3+	BFR 3+
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	DEL is a public listed company and its ownership stakes are divided between different entities and individuals. The primary shareholder, Mr. Ayaz Dawood, holds ~19% ownership in the company. B.R.R. In
	Governance	The Company maintains a strong board structure, consisting of one executive director, four non-executive directors, and two independent directors. The Chairman is an independent director and all board
	Management and Client Services	The Company has a lean organization structure with a qualified and experienced management team. Client services are considered good with online trading and research reports present.
	Internal Controls and Regulatory Compilance	The Board Audit Committee supervises the outsourced internal audit function, contributing to a robust internal control environment. While the necessary policies are in place, there is potential to enh
	Business Sustainability	DEL has performed inline with the market during FY24. The Company reported a net profit of ~PKR 30mln during FY24 and ~PKR 9mln during 1QFY25 (SPLY: ~PKR 3mln). The profit stems from brokerage income
	Financial Sustainability	DEL engages in proprietary trading thus is exposed to market risk. A low-leveraged capital structure is present; moreover, the Company has an adequate equity base of ~PKR 303mln at end-Sep'24 to resis

Key Rating Drivers

FY24 was a favorable period for the brokerage industry, with the KSE-100 Index reaching historic highs in June 2024 and DEL's performance was in line with the market upward trend. Moving forward, income diversification, enhancement or sustainability in market share, and sustainability in revenue and profitability remains vital. Meanwhile, it is imperative to uphold robust internal controls, retention of key management personnel, and diligently monitor risks.

About the Entity
	Legal Structure	Listed
	Year of Establishment	03-May-06
	Type of License	Trading and Self-clearing
	Majority Ownership	Ayaz Dawood (~19%)

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

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