Karachi: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Insight Securities (Private) Limited at ‘BBB+/A-2’. The long-term rating reflects adequate credit quality with reasonable and sufficient protection factors, though risk factors may vary with economic changes. The short-term rating indicates a good likelihood of timely repayment of obligations, supported by sound liquidity factors. The outlook on these ratings is stable, maintaining the previous rating announced last year.

According to VIS Credit Rating Company Limited, Insight Securities, established in 2006, offers equity brokerage services in both ready and future markets to retail and institutional clients. The company is a holder of the Trading Rights Entitlement Certificate (TREC) for Trading & Self Clearing Services by the Pakistan Stock Exchange Limited (PSX). Its operations, audited by M/s Grant Thornton Anjum Rehman Chartered Accountants—a category ‘A’ firm on the State Bank of Pakistan’s approved list—include online and assisted trading services, based out of Karachi.

The reaffirmed ratings reflect Insight Securities’ robust business and financial profile. For the first nine months of FY24, the company saw an increase in brokerage revenue due to heightened market activity and a significant contribution from dividend income. Although revenue largely stemmed from brokerage services, FY24 also benefited from one-off capital gains. Operational efficiency improved to moderate levels. Despite high market risks from equity exposure, the company’s liquidity remains robust, with liquid assets significantly covering total liabilities. Insight Securities’ strong capitalization, free of debt, supports its financial stability; however, its liquid capital is limited compared to peers. Future rating considerations will focus on maintaining solid capitalization and liquidity, increasing market share, and enhancing operational efficiency.