Lahore, October 31, 2022 (PPI-OT):Optimus Capital Management (Pvt.) Limited (“Optimus Capital” or “The Company”) mainly provides the services of equity brokerage while having a good presence in off-market transactions. The assigned rating incorporates the Company’s satisfactory internal control and risk management framework. An in-house internal audit department provides strength to the overall control environment. However, the internal control framework could be improved further by separating the compliance and finance departments. The rating also takes note of a sound customer relationship and IT infrastructure. A well-developed research department is in place to provide the clients with the necessary research services.
The clients are provided with the portfolio statements on a timely basis. The Company has devised a comprehensive Disaster Recovery plan and a well-developed transactions execution and monitoring system. The Company has a lean organizational structure with most of the heads reporting to the CEO. The management team comprises seasoned professionals that ensure the sound quality of services. The rating draws strength from the experienced profile of the CEO, Mr. Asif Ali Qureshi, who has been associated with the capital markets for over 25 years.
The governance framework may be improved further by increasing board size and having independent representation. The market risk is negligible as the Company does not invest in equity securities; however, the excess liquidity is parked in PIB’s. The topline has improved by ~26% YoY in FY22 despite declining market volumes, the necessary support was provided by a good share of the off-market transactions.
Going forward, the Company is intensively focusing on strengthening its position through penetration in the retail segment for which the advancement of technological platforms is in process. Going forward, sustainability and improvement in core revenue and profitability remains critical. Meanwhile, upholding strong internal controls, retention of key management and diligent monitoring of risk are important.
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