Rating Details	Rating Type	BFR
	Dissemination Date	Current (14-Jun-24 )	Previous (14-Jun-23)
	Action	Maintain	Maintain
	Rating	BFR 3	BFR 3
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	The rating incorporates the long standing experience of the primary sponsor Mr. Adam Haji Muhammad who owns the majority shareholding of ~99.6%.
	Governance	The Company has an adequate board structure comprising of three directors, all representing the shareholder family members. Inclusion of independent representation may be considered to strengthen the
	Management and Client Services	The Company has a lean organizational structure with an experienced and qualified management team. AHM has provided its client with the facility of online trading featuring universal access to their a
	Internal Controls and Regulatory Compilance	AHM has a dedicated compliance head who ensures effective compliance reporting. The Company has implemented the control framework which commensurate with the scale of business operations.
	Business Sustainability	AHM has performed adequately during 1HFY24. The Company reported a net profit of ~20mln in 1HFY24 (SPLY: ~PKR 5mln). The profit stems from brokerage income and gains on proprietary investment.
	Financial Sustainability	AHM is managing a prop-book which exposes it to market risk. At end Dec'23, the proprietary investment stood at ~PKR 35mln, as compared to ~PKR 43mln at end Dec'22. The Company has adequate capitaliza

Key Rating Drivers

AHM Securities Pvt. Limited ("AHM" or "the Company") focuses primarily on delivering equity brokerage services as its core product portfolio. The brokerage industry has picked up pace since October'23 and the KSE-100 Index has constantly breached historic high levels. AHM took advantage of the market uptick and earned realized/unrealized gains of ~PKR 20mln through prop book in 1HFY24 as compared to loss of ~PKR 0.2mln in 1HFY23. Accordingly, profitability of the Company also improved. Moving forward, revenue and customer diversification is important for the rating. Meanwhile, it is imperative to uphold robust internal controls, retention of key management personnel, enhancement of market share, and sustainability in profitability.

About the Entity
	Legal Structure	Private Limited
	Year of Establishment	06-Jan-05
	Type of License	Trading and Self-clearing
	Majority Ownership	Mr. Adam Haji Muhammad (~99%)

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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