Karachi: VIS Credit Rating Company Limited has reaffirmed the entity ratings of Darson Securities Limited at ‘BBB+/A-2’, indicating adequate long-term credit quality and a good likelihood of timely repayment of short-term obligations. The ratings reflect sound liquidity factors and a stable outlook, consistent with the previous assessment from December 2022.

According to VIS Credit Rating Company Limited, Darson Securities (Private) Limited continues to provide equity broking services from its corporate office in Karachi and its registered office in Lahore. The company, holding a Trading Right Entitlement Certificate from the Pakistan Stock Exchange since 2000, has been audited by Muniff Ziauddin and Co Chartered Accountants, approved by the State Bank of Pakistan.

Darson Securities has experienced growth in its client base and expansion in operations, including opening a new branch in Islamabad last fiscal year, bringing the total to 11 nationwide. Plans are underway to open another branch in Peshawar to further enhance geographic coverage and client service. Despite a predominance of brokerage income in its revenue mix, which poses a risk due to low diversification, the company maintains a strong market position primarily serving domestic retail and some foreign clients.

Financial assessments indicate stress on the company’s earnings profile at the end of the fiscal year, attributed to a decrease in core brokerage income and a higher cost-to-income ratio due to reduced market volumes. Nevertheless, the company’s liquidity remains adequate and its capitalization is considered strong. Future ratings may depend on improved operating income, a broadened revenue base, and better market share metrics.