PACRA maintains Broker Entity Ratings of Optimus Capital Management (Pvt.) Limited

Optimus Capital Management (Pvt.) Limited ('OCM' or the 'Company') primarily focuses on Equity brokerage services while advisory services and block trades services are also provided. The brokerage sector faced significant headwinds in FY22-FY23, constrained by monetary tightening cycles and persistent inflationary pressures, which suppressed investor risk appetite. However, 2QFY24 marked a structural inflection point, with the KSE-100 Index achieving unprecedented valuation thresholds, driven by improved liquidity conditions and institutional participation. This momentum sustained through 2HFY24, with the benchmark consolidating within a 70,000-80,000 basis point corridor, followed by a historic breach of the 100,000 psychological barrier in 1HFY25 (November 2024), catalysed by monetary easing cycles and macroeconomic stabilization measures. OCM operates as a wholly-owned subsidiary of Optimus Holdings (Pvt.) Limited. The Company’s governance structure currently features a compact Board of Directors, led by two executive members: Mr. Syed Ayaz Ahmad and Mr. Yasin Iqbal Kodvani, both seasoned professionals with over 17 years of combined expertise in Pakistan’s capital markets ecosystem, including specialized proficiency in macroeconomic research and institutional portfolio strategy. To align with governance benchmarks, OCM acknowledges the strategic imperative to augment board composition through the inclusion of independent non-executive directors, thereby enhancing oversight rigor and stakeholder confidence. OCM’s streamlined organizational architecture is supported by a strong client franchise and enterprise-grade technological infrastructure, enabling seamless trade execution and real-time risk management. The Company’s dedicated investment research division delivers alpha-generating insights, underpinning its value proposition to institutional and retail clientele. As of December 2024, OCM maintains a proprietary trading portfolio valued at PKR 22 million, complementing its core brokerage operations. The Company reported 1HFY25 revenues of PKR 108 million, reflecting a 120% YoY expansion in brokerage commissions (PKR 90 million vs. SPLY: PKR 50 million). OCM’s unleveraged balance sheet remains a cornerstone of its credit strength, with an equity base of PKR 308 million as of December 2024, ensuring ample liquidity buffers and capital preservation capacity.
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. The inclusion of independent representation may be considered to strengthen the governance framework. Moreover, retention of key management personnel and further separation of management roles remain critical.

About the Entity
Optimus Capital Management (Pvt.) Limited (“OCM”) is a PSX-licensed brokerage firm regulated by the Securities & Exchange Commission of Pakistan (SECP). Originally incorporated in 2004 as Millennium Capital Management (Pvt.) Limited, the Company was rebranded to OCM in 2011. It operates as a wholly-owned subsidiary of Optimus Holdings (Pvt.) Limited, with ownership split between Mr. Jawad Amjad (74%) and Mr. Yasin Iqbal Kodvani (26%). OCM’s board comprises two executive directors: Mr. Syed Ayaz Ahmed and Mr. Yasin Iqbal Kodvani, who bring 10 and 7 years of financial markets expertise, respectively. The firm is well-positioned as a trusted player in Pakistan’s capital markets, leveraging its regulatory compliance, experienced leadership, and strong governance framework.