Press Release
Date: 25-Sep-23
PACRA upgrades Broker Fiduciary Rating of Optimus Capital Management (Pvt.) Limited

Rating Details Rating Type BFR
Dissemination Date Current (25-Sep-23 ) Previous (28-Oct-22)
Action Upgrade Maintain
Rating BFR 2 BFR 3++
Outlook Stable Stable
Rating Watch - -

Rating Rationale Factor Comment
Ownership OCM's ultimate ownership vests with Mr. Jawad Amjad (20%) and Mr. Asif Ali Qureshi (80%). The rating draws comfort from the strong business acumen of the sponsors.
Governance The Company has a small board comprising two executive directors. The planned induction of an independent director during the upcoming directors elections will enhance the oversight framework moving f
Management and Client Services An addition of an online sales department and the separation of management roles has improved the organizational structure. By leveraging its group synergies, OCM provides sound client services.
Internal Controls and Regulatory Compliance A dedicated Compliance Officer has recently been hired, boosting the compliance framework of the Company. Key board approved policies are updated on a timely basis to account for any regulatory change
Business Sustainability Despite low market volumes during FY22 and FY23, OCM has maintained its topline, and subsequently its profitability, through providing advisory services along with facilitating large block deals consi
Financial Sustainability Market risk is limited due to the Company not partaking in proprietary trading. Moreover, a zero-leveraged capital structure provides comfort to the rating.

Key Rating Drivers Optimus Capital Management (Pvt.) Limited ('OCM' or the 'Company') has shown resilience during recent years, outperforming its competitors through revenue diversification. 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. Moreover, retention of key management personnel and further separation of management roles remain critical.

About the Entity
Legal Structure Private Limited
Year of Establishment 18-Mar-04
Type of License Trading and Self-clearing
Majority Ownership Optimus Holdings (Pvt.) Limited

Regulatory Disclosures Analyst Applicable Criteria Related Research
Hassaan Ahmad

Methodology | Broker Fiduciary Rating | Jan-23

Sector Study | Brokerage & Securities | Jan-23

Disclaimer This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA. The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.