Lahore, December 14, 2021 (PPI-OT): The ratings take into account JS Global Capital Limited’s (“JSGCL” or “The Company”) established position as the top-tier brokerage house of the industry. The ratings incorporate the stable and sizeable market share, established brand name and a sound operating platform. The ratings also incorporate the strong sponsor profile, zero leveraged capital structure and well managed liquidity indicators. Following the recent boom in traded volumes of stock exchange, the core revenue of the Company improved and the Company maintained its market share.

The Company’s investment portfolio is compliant to its investment policy and is dominated by bank placements and equity spread transactions resulting in low exposure to market risk. The rating takes into account the Company’s strong financial profile with the Net Capital Balance of ~PKR 870mln and an equity base of ~PKR 2.3bln at end-Sep’21. Whereas, the topline of the Company depicts diversified revenue stream supplemented by consultancy income, RBFS transaction, margin financing and investment return on financial assets. The Company remained profitable during 3QCY21 where the net profit after tax clocked in at ~PKR 400mln (SPLY: ~PKR 136mln).

The ratings are dependent on the management’s ability to sustain and strengthen the revenue base by augmenting consultancy and advisory services. Retaining market share and sustaining profitability from core operations remain critical. Meanwhile, upholding strong internal controls and diligent monitoring of risks is 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