Rating Details	Rating Type	BFR
	Dissemination Date	Current (28-Nov-25 )	Previous (29-Nov-24)
	Action	Maintain	Maintain
	Rating	BFR 3+	BFR 3+
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	Dawood Equities Limited ('DEL' or 'the Company') is a public listed company. The primary shareholder, Mr. Ayaz Dawood, holds ~19% ownership in the company. B.R.R. Investment (Pvt.) Limited and Equity International (Pvt.) Limited hold stakes of ~10% and 15%, respectively while Mr. Junaid Dada owns 7% of shareholding. The remaining ~49% of the company's shares are free float, held by individual and institutional investors.
	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 committees are chaired by the Chairman, further strengthening the oversight framework.
	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 an effective internal control environment. While the necessary policies are in place, there is potential to enhance their scope and depth. Compliance reporting is effectively managed by a dedicated compliance head.
	Business Sustainability	DEL has performed inline with the market during FY25. The Company reported a net profit of ~PKR 35mln during 1QFY26 (SPLY: ~PKR 9mln). The profit stems from brokerage income which stood at ~PKR 87mln.
	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 423mln at end-Sept'25 to resist market shocks.

Key Rating Drivers

Fiduciary practices across client servicing, compliance, and core risk oversight remain integral to the control architecture, with incremental enhancements expected to further strengthen the overall governance and risk-management environment. Going forward, deepening management capacity, refining internal control mechanisms, incrementally strengthening client-protection, improving grievances mechanisms and conflict-management frameworks will remain important for sustaining and improving the fiduciary profile.

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
	Usama Ali usama.ali@pacra.com +92-42-35869504 www.pacra.com	Assessment Framework | Broker Fiduciary Rating | Jan-25 Methodology | Rating Modifiers | Apr-25	Sector Study | Brokerage Firms | Feb-25

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