Rating Details	Rating Type	BFR
	Dissemination Date	Current (21-Jun-24 )	Previous (23-Jun-23)
	Action	Maintain	Maintain
	Rating	BFR 2	BFR 2
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	Controlling stakes are owned by Mr. Syed Muhammad Ismail Abbasi (~69.7%) whereas the rest of the ownership resides with family members. The business acumen of the sponsoring family is considered stron
	Governance	ACPL has three directors on the board. All three directors are from the sponsoring family. The governance framework may be improved through the induction of independent directors.
	Management and Client Services	The Company has a well-developed organizational structure and an experienced management team. Client services are adequate with research reports present. The Company has recently revamped its website
	Internal Controls and Regulatory Compilance	The internal control framework is strengthened through an outsourced internal audit function. Separate risk and compliance departments are also present to ensure effective risk management and adherenc
	Business Sustainability	Equity brokerage is the primary source of revenue, whereas commodity brokerage and MTS are also available for limited diversification. During 9MFY24, ACPL earned ~PKR 50mln (SPLY: ~PKR 26mln) as opera
	Financial Sustainability	The Company has a zero-leveraged capital structure. Proprietary trading exposes ACPL to market risk; however, the prop-book is effectively managed through an investment policy. ACPL's equity stood at

Key Rating Drivers

Abbasi and Company (Pvt.) Limited ("ACPL" or the “Company") is one of the pioneers of the brokerage industry in the northern region. Since Oct'23, the PSX has surged with investor interest, resulting in the KSE-100 index reaching historic high levels amid high volumes. In-line with the market, ACPL's revenue also increased by ~92% during 9MFY24. Moving forward, diversification in revenue streams, customer base, and geographic reach is vital. Moreover, upholding of internal controls and growth in profitability remain important.

About the Entity
	Legal Structure	Private Limited
	Year of Establishment	13-Feb-99
	Type of License	Trading and Self-clearing
	Majority Ownership	Mr. Syed Muhammad Ismail Abbasi | ~69.7%

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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