Rating Details	Rating Type	BFR
	Dissemination Date	Current (14-Mar-25 )	Previous (15-Mar-24)
	Action	Maintain	Initial
	Rating	BFR 2	BFR 2
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	AAH is predominantly owned by Mr. Aba Ali Habib, who holds ~99.99% of the shares. With over 40 years of experience in the capital markets, he has developed a diversified expertise in equity brokerage.
	Governance	The Company upholds a robust governance framework, comprising a six-member board, with an equal representation of three executive directors and three non-executive directors including an independent d
	Management and Client Services	AAH operates with a streamlined organizational structure, encompassing essential departments such as research, internal audit, and compliance and risk management. The company is supported by an experi
	Internal Controls and Regulatory Compilance	AAH has a strong internal control environment, supported by outsourced internal audit services and the active participation of audit and risk management committees. A dedicated compliance officer over
	Business Sustainability	AAH's topline is concentrated to equity brokerage; however, there is diversity present in the form of MFS & MTS. During 1HFY25, the company earned ~PKR 159mln ( SPLY: ~PKR 90mln) as operating revenue,
	Financial Sustainability	The company's low-leverage capital structure further supports the rating. As of December 31, 2024, AAH boasts a robust equity base of ~PKR 1,634mln.

Key Rating Drivers

The brokerage industry demonstrated strong performance in 1HFY25, driven by renewed investor interest. AAH plans to expand its geographic reach to enhance its retail clientele and increase market share. The management also aims to upgrade its technological infrastructure to facilitate the swift on-boarding of retail clients. Going forward, the successful implementation of planned revenue and geographic diversification will be crucial to the rating. Maintaining and improving market share, along with sustaining growth in revenue and profitability, remains essential. Additionally, it is critical to uphold robust internal controls, retain key management personnel, and diligently monitor risks.

About the Entity
	Legal Structure	Private Limited
	Year of Establishment	08-May-96
	Type of License	Trading and Self-clearing
	Majority Ownership	Mr. Aba Ali Habib (~99.99%)

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Usama Ali usama.ali@pacra.com +92-42-35869504 www.pacra.com	Assessment Framework | Broker Fiduciary Rating | Jan-25	Sector Study | Brokerage Firms | Feb-25

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