Lahore, November 01, 2021 (PPI-OT):The assigned rating reflects the Optimus Capital Management (Pvt.) Limited’s (“Optimus Capital” or “the Company”) experienced management team, acclaimed research and strong control environment. The rating draws strength from the experienced profile of the CEO, Mr. Asif Ali, who has been associated with the capital markets for over 25 years. On governance front, inclusion of independent director would enable the Company to procure independent insight. The rating also takes note of satisfactory client servicing, appropriate IT infrastructure, effective internal audit function, prudent financial management and adequate risk assessment and compliance procedures.
The market share of the Company has declined to ~1.5% during FY21, on account of off-loading from foreign clientele which contributes around 25% to total market contribution of Optimus Capital. However, the Company has well performed in off market deals. Going forward, the Company is intensively focusing on strengthening its position through penetration in retail segment. In order to strengthen this, the Company is also in process of strengthening its technology platform and also hired head of online trade. The Company has devised comprehensive Disaster Recovery plan well-developed transactions execution and monitoring system, sound research quality and strong control environment.
The management team comprises seasoned professionals that ensures sound quality of services. The Company is not running proprietary book hence, less exposed to market risk. In order to strengthen its revenue base the Company is also focusing on corporate finance and advisory services. During FY21, the Company earned PAT of PKR 21mln (FY20: PKR (6) mln). The rating also takes comfort from leverage free capital structure. Furthermore, the Company has adequate capitalization levels with the Net Capital Balance (NCB) of ~PKR 191mln as at 1HFY21. The equity base of ~PKR 339mln, as at end-Jun’21, provides cushion against potential losses. Going forward, upturn in performance, on the back of hefty trade volumes at the PSX and favourable macroeconomic environment would act as tailwinds for the Company.
Strengthen market share, sustainable profits, sound internal controls, client relationship, HR and IT services and risk management framework, regulatory compliance, external control environment will remain imperative. Further, rational diversification of business activity may provide support to the company’s overall financial risk 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