Lahore, August 06, 2021 (PPI-OT):The ratings reflect Jahangir Siddiqui and Co. Limited’s (‘JSCL’ or ‘the Company’) strong presence as a Holding Company in the financial sector with a portfolio of strategic investments mainly in banking (JS Bank, BankIslami Pakistan), insurance (EFU Life Assurance and EFU General Insurance), brokerage (JS Global Capital) and asset management segments (JS Investments). JS Bank is on its path to establish itself as a medium-sized bank whereas BankIslami aims to expand its presence in the growing Islamic Banking sphere. The results have been so far mixed with macroeconomic challenges and stiff competition in the banking sector. JSCL holds a significant stake in EFU General Insurance (EFUG) and EFU Life Assurance (EFUL) and plans to maintain them.
After witnessing volatile markets for a while, JS Global and JS Investments are expected to improve performance. JSCL intends to diversify its portfolio and has made significant investments in LPG storage and infrastructure and OMC segments. The Company has made ~ PKR 2bln investments in these segments through its wholly-owned subsidiary, Energy Infrastructure Holding (Pvt.) Ltd. These investments are nearing the completion of the gestation phase with the amalgamation of JS Fuel (Pvt.) Ltd. and Quality 1 Petroleum (Pvt.) Ltd. The Company has very strong capital structure with low leveraging and adequate coverages. The COVID outbreak has not impacted the Company’s portfolio materially, exhibiting its resilience.
The ratings are dependent on the management’s ability to execute its envisaged strategy of growth and expansion amidst the prevailing tough environment. Timely materialization of these initiatives into sustainable ventures is critical. Strong performance of subsidiaries, stable dividends, and effective management of financial profile and liquidity remains 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