Lahore, June 15, 2023 (PPI-OT): AHM Securities (Pvt.) Limited (“AHM” or “the Company”) mainly provides the services of equity brokerage which is also the primary source of revenue for the Company. The rating incorporates the sound business understanding of the primary sponsor having a sound financial profile. The presence of an independent insight may strengthen the governance framework. AHM has an experienced management team capable to serve clients in a good manner. Forming an independent compliance function and separate risk management may align the internal control framework with the best practices.
AHM provides the facility of an online trading platform; however, the formation of a research department may further enhance the level of client services. AHM reflected a significant improvement in the topline during FY21; however, FY22 remained a lackluster year for the market. AHM managed to curtail the decline in topline at ~15% as compared to a decline of ~36% in the market volumes during 1HFY23 while markup on deposits supported the bottom line to remain in profit. The uncertainty prevailing in the equity market amid ongoing political tension may have an adverse impact on the top line in the future. The rating remains dependent on AHM’s ability to sustain and improve its financial profile.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com