PACRA maintains Broker Entity Ratings of Optimus Capital Management (Pvt.) Limited

Optimus Capital Management (Pvt) Limited ('OCM' or the 'Company') has steadily improved its market presence over the past few years. The Company is primarily engaged in the provision of equity services including ready or future dealings, whereas advisory services are also offered. The clientele is concentrated to Institutions/Corporates and HNWI’s, while the Company is working to enhance its footprint in the retail segment as well. The outgoing FY23 was marred with challenges for the brokerage industry, with investors opting for safer fixed income returns instead of the riskier equity market. Moreover, political instability meant that investor interest, both foreign and local, was minimal. However, with the political situation stabilizing and key macro-economic steps taken, investor interest has been renewed since the start of 2QFY24. The KSE-100 Index has reached historic highs and the market is expected to grow further during FY24. The assigned rating takes into account the strong business acumen and market renown of the sponsors. The governance framework is considered adequate; however, it may be enhanced further with the induction of certified independent directors. OCM has a lean organizational structure with a qualified and experienced management to run the operations. During 1HFY24, the Company earned a brokerage revenue of ~PKR 50mln (SPLY: ~PKR 30mln). Despite low market performance, OCM sustained its performance and earned a profit of ~PKR 5mln during 1HFY24 (SPLY: a net loss of ~PKR 12mln). OCM has an adequate equity base of ~PKR 338mln at end Dec’23 as compared to ~PKR 332mln at end Dec’22. The Company's strategy going forward is to target retail clientele, and OCM has added an Online Sales department during the year to effectively realize its plan.
Moving forward, income diversification, enhancement in market share, and growth in revenue and profitability remains vital. Meanwhile, it is imperative to uphold robust internal controls, retention of key management personnel, and diligently monitor risks.

About the Entity
Optimus Capital Management (Pvt.) Limited holds the Trading Rights Entitlement Certificate from the Pakistan Stock Exchange and is licensed by the Securities & Exchange Commission of Pakistan. Previously known with the name of Millennium Capital Management (Pvt.) Limited, the Company was incorporated in 2004 and the name was changed to Optimus Capital Management (Pvt.) Limited in 2011. Optimus Capital Management (Pvt.) Limited is a wholly owned subsidiary of Optimus Holdings (Pvt.) Limited. The CEO, Mr. Asif Ali Qureshi, and Mr. Jawad Amjad own 80% and 20% of Optimus Holdings, respectively. The sponsors possess more than ~25 years of financial markets experience. The board is comprised of two executive directors including the CEO - Mr. Asif Ali Qureshi, and Mr. Syed Ayaz Ahmed.