Optimus Capital Management (Pvt.) Limited | BMR

CREDIT RATING REPORT | Sep-25

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Rating History
Dissemination Date Rating Outlook Action Rating Watch
25-Sep-25 BMR2 Stable Maintain -
25-Sep-24 BMR2 Stable Maintain -
25-Sep-23 BMR2 Stable Maintain -
28-Oct-22 BMR2 Stable Maintain -
29-Oct-21 BMR2 Stable Upgrade -
About the Entity

Optimus Capital Management (Pvt.) Limited ('OCM') is a PSX-licensed brokerage firm regulated by the Securities & Exchange Commission of Pakistan (SECP). Originally incorporated in 2004 as Millennium Capital Management (Pvt.) Limited, the Company was rebranded to OCM in 2011. It operates as a wholly-owned subsidiary of Optimus Holdings (Pvt.) Limited, with ownership split between Mr. Jawad Amjad (74%) and Mr. Yasin Iqbal Kodvani (26%). OCM’s board comprises two executive directors: Mr. Syed Ayaz Ahmed and Mr. Yasin Iqbal Kodvani, who bring 10 and 7 years of financial markets expertise, respectively. The firm is well-positioned as a trusted player in Pakistan’s capital markets, leveraging its regulatory compliance, experienced leadership, and strong governance framework.

Rating Rationale

Optimus Capital Management (Pvt.) Limited ('OCM' or the 'Company') primarily focuses on Equity brokerage services while advisory services and block trades services are also provided. The KSE-100 Index has witnessed a significant surge in investor interest, repeatedly touching historic highs and, for the first time, breaching the 125k-point mark in FY25. Despite this rally, the market’s P/E ratio remains relatively low, indicating room for further upside. A notable catalyst has been the reduction in the policy rate at the start of FY25, which prompted a shift in investor preference from fixed-income instruments to equities, fueling fresh buying momentum. This environment has created a favorable backdrop for the brokerage industry, with higher trading volumes, increased retail participation, and enhanced transaction-based revenues. While FY25 has been a strong year for the sector, sustaining investor confidence beyond FY25 will hinge on political stability, macroeconomic resilience, and the continuation of market-friendly policies. OCM operates as a wholly-owned subsidiary of Optimus Holdings (Pvt.) Limited. On April 30, 2025, OCM acquired Alfalah Securities through a share purchase agreement of PKR 313 million, Alfalah Securities, however will retain a 4.41% stake for regulatory continuity. The Company’s governance structure currently features a compact Board of Directors, led by two executive members: Mr. Syed Ayaz Ahmad and Mr. Yasin Iqbal Kodvani, both seasoned professionals with over 17 years of combined expertise in Pakistan’s capital markets ecosystem, including specialized proficiency in macroeconomic research and institutional portfolio strategy. Mr. Jawad, as an experienced professional and shareholder, provides important insight that supports decision-making and the company’s growth. To align with governance benchmarks, OCM acknowledges the strategic imperative to augment board composition through the inclusion of independent non-executive directors, thereby enhancing oversight rigor and stakeholder confidence. OCM’s streamlined organizational architecture is supported by a strong client franchise and enterprise-grade technological infrastructure, enabling seamless trade execution and real-time risk management. The Company’s dedicated investment research division delivers alpha-generating insights, underpinning its value proposition to institutional and retail clientele. As of Jun'25, the Company reported brokerage commission income of ~PKR 170mln in FY25 (FY24: ~PKR 98mln), reflecting a YoY growth of ~73%. At end FY25, the Liquid Capital Balance (LCB) of the Company stood at ~PKR 83mln. The Company has an equity base of ~PKR 318mln at end-Jun'25.

Key Rating Drivers

From a ratings perspective, retention and induction of key management personnel remain central to the company’s management assessment. Sustaining topline growth, revenue diversification, and profitability, along with realizing anticipated synergies from OCM’s acquisition of Alfalah Securities, and strengthening market share and governance through independent representation will support management effectiveness.

REPORT CONTENTS
  1. Rating Analysis
  2. Financial Summary
  3. Rating Scale
  4. Regulatory Disclosure

Optimus Capital Management (Pvt.) Limited | BMR

rating analysis

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Ownership
Ownership Structure

Optimus Holdings is the parent company that owns OCM. Mr. Jawad Ahmad and Mr. Yasin Iqbal Kodvani are the sponsors of Optimus Holdings with 74% and 26% shareholding respectively. Previously, Mr. Jawad and Mr. Asif had equal shareholding in Optimus Holdings however, Mr. Jawad joined PNO, a private equity fund, as the CEO. According to the NBFC rules, CEO of any NBFC cannot hold more than 20% shares of any company therefore, Mr. Jawad transferred 30% of his shareholding in Optimus Holdings to Mr. Asif.


Stability

The parent company Optimus Holding (Pvt.) Limited has a strong nancial base and has strategic investments in numerous companies. Optimus Holdings (Pvt.) Limited remains on the front foot to support the company.


Business Acumen

The sponsors have relevant educational background and also have vast experience in the financial services sector. In addition to Optimus Holdings the sponsors have shareholding in other entities; PNO, Optimus Market (Pvt.) Limited and Zakheera (Pvt.) Limited.


Financial Strength

The sponsors have adequate financial strength and may inject further equity with increasing quantum of operations.


Governance
Board Structure

The board of directors (BOD) of OCM comprises of two experienced professionals Mr. Syed Ayaz Ahmed and Mr. Yasin Iqbal Kodvani. The directors are executive, and the board may be enhanced with the induction of certied independent directors.


Members’ Profile

Mr. Syed Ayaz Ahmed and Mr. Yasin Iqbal Kodvani are the CEOs of the Company and have more than 1 decade and 6 years of experience respectively in Pakistan's financial sector with expertise in economic and investment research.


Board Effectiveness

The experience of board helps in providing useful insight into the business management and guiding the management in effectively developing optimizing the organizational procedures and policy.


Financial Transparency

Head of internal audit reports directly to the internal audit committee. Riaz Ahmad, Saqib, Gohar & Company are the external auditors of the Company. The auditor is ranked as Category B auditor on the panel of SBP auditors list.


Management
Management Team

The management team comprises of well qualied and experienced individuals. Mr. Syed Ayaz Ahmed and Mr. Yasin Iqbal Kodvani have taken charge as CEO of the Company after the resignation of Mr. Asim. Mr. Ayaz and Mr. Yasin posses over 10 years and 6 years of experience respectively in financial sector.


Organizational Structure

OCM has a lean organizational structure with experienced management team and a balanced mix of professional from nance industry. The functions of the company are mainly divided into: 1) Sales. 2) Accounts, 3) Research, 4) Settlement, 5) IT 6) Compliance 7) Online Trading and 8) Admin, An Online Sales department has recently been added to realize the Company's strategy of enhancing its retail presence.


Client Servicing

The Company has a well-developed research department comprising of five analysts including the head of research. An online trading platform and mobile application is also present.


Complaint Management

The Company maintains a clearly defined complaint management system within its Management Information System (MIS). Complaints can be submitted through email or phone calls. This system is regularly updated and undergoes quarterly reviews conducted by the compliance officer.


Extent Of Automation / Integration

The Company has developed a comprehensive IT policy that covers crucial areas such as data backup and recovery, virus protection, and control environment. Furthermore, all back-office systems have been seamlessly integrated.


Continuity Of Operations

In order to ensure uninterrupted business operations. the Company has implemented a meticulously tested disaster recovery and business continuity plan. This plan includes the creation of daily, weekly, and monthly backups. Additionally, to maintain stable connectivity, the Company has established four separate connections from distinct Internet Service Providers (ISPs).


Risk Management Framework

The Company has developed an extensive risk management policy encompassing exposure limits, margins, KYC/CDD, customer orders, as well as execution and settlement processes. The settlement department is responsible for conducting thorough KYC/CDD procedures for each customer, categorizing them into varying risk levels, ranging from low to high. High-risk customers undergo enhanced due diligence through continuous monitoring. The addition of a dedicated compliance officer has improved the regulatory framework.


Regulatory Compliance

Mr. Ayaz Ahmed leads the Company's compliance department, bringing over a decade of professional expertise. This department is responsible for ensuring timely compliance with all regulatory obligations.


Business Sustainability
Business Risk

The KSE-100 Index has witnessed a significant surge in investor interest, repeatedly touching historic highs and, for the first time, breaching the 125k-point mark in FY25. Despite this rally, the market’s P/E ratio remains relatively low, indicating room for further upside. A notable catalyst has been the reduction in the policy rate at the start of FY25, which prompted a shift in investor preference from fixed-income instruments to equities, fueling fresh buying momentum. This environment has created a favorable backdrop for the brokerage industry, with higher trading volumes, increased retail participation, and enhanced transaction-based revenues. While FY25 has been a strong year for the sector, sustaining investor confidence beyond FY25 will hinge on political stability, macroeconomic resilience, and the continuation of market-friendly policies.


Business Profile

OCM mainly offers equity services including ready and Future dealings, whereas advisory services are also offered. The Company has started dealing in Margin Trading System (MTS) transactions. The brokerage clients are divided into three broad segments; i) Foreign ii) Institutions/Corporate and iii) Retail, Currently, OCM has a minimal presence in the retail segment; however, plans are in place to enhance its retail footprint.


Revenue and Profitability Analysis

The Company's operating revenue mainly comprises equity brokerage income. During FY25 the main source of revenue stemmed from equity brokerage, so Equity brokerage revenue stood at ~PKR 170mln. At the end of Jun'25, the net income stood at ~PKR 227mln.


Financial Sustainability
Credit Risk

For the assessment of client's credit worthiness, the Company has formulated detailed KYC/CDD policies. These policies entail customer identication, risk assessment, due diligence and compliance function. Exposure limits are properly assigned. An automated risk management system is in place that halts transactions for a particular client if margin falls below the allocated level.


Market Risk

Optimus Capital Management (Pvt.) Limited does not engage in proprietary investments, thus limiting the impact of market risk. The Company's short-term investments were ~PKR 24mln at end-Jun'25.


Liquidity Profile

At the end-Jun'25, the current assets of the Company stood at ~PKR 141mln against the current liabilities of ~PKR 11mln, reflecting a strong liquidity position.


Financial Risk

At end FY25, the Liquid Capital Balance (LCB) of the Company stood at ~PKR 83mln. The Company has an equity base of ~PKR 318mln at end-Jun'25.
 
 

Sep-25

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Optimus Capital Management (Pvt.) Limited | BMR

financial summary

(PKR mln)

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Jun-25
12M		 Jun-24
12M		 Jun-23
12M
Audited Audited Audited
A. BALANCE SHEET
1. Finances 3 2 0
2. Investments 416 43 51
3. Other Earning Assets 0 0 195
4. Non-Earning Assets 472 281 152
5. Non-Performing Finances-net 0 0 0
Total Assets 891 326 399
6. Funding 450 4 41
7. Other Liabilities (Non-Interest Bearing) 65 4 11
Total Liabilities 515 8 52
Equity 376 318 346
B. INCOME STATEMENT
1. Fee Based Income 204 99 128
2. Operating Expenses (170) (144) (152)
3. Non Fee Based Income 23 63 42
Total Opearting Income/(Loss) 58 18 18
4. Financial Charges (1) 0 (1)
Pre-Tax Profit 57 18 17
5. Taxes (1) (0) (15)
Profit After Tax 56 18 2
C. RATIO ANALYSIS
1. Cost Structure
Financial Charges / Total Opearting Income/(Loss) 1.2% 0.0% 5.5%
Return on Equity (ROE) 22.2% 8.7% 0.8%
2. Capital Adequacy
Equity / Total Assets (D+E+F) 58.3% 97.4% 97.1%
Free Cash Flows from Operations (FCFO) / (Financial Charges + Current Maturity of Long Term Debt + Uncovered Short Term Borrowings) ("#,##0.00") N/A ("#,##0.00")
3. Liquidity
Liquid Assets / Total Assets (D+E+F) 7.9% -11.8% 16.8%
Liquid Assets / Trade Related Liabilities 20.7% N/A 145.6%
4. Credit & Market Risk
Accounts Receivable / Short-term Borrowings + Advances from Customers + Payables to Customers 12.7% N/A 20.7%
Equity Instruments / Investments 3.9% 10.0% 8.4%

Sep-25

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Optimus Capital Management (Pvt.) Limited | BMR

rating scale

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Sep-25

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Optimus Capital Management (Pvt.) Limited | BMR

regulatory disclosure

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  1. Rating Team Statements
    1. Rating is just an opinion about the creditworthiness of the entity and does not constitute a recommendation to buy, hold, or sell any security of the entity rated or to buy, hold, or sell the security rated, as the case may be. (Chapter III; 14-3-(x))
    2. Conflict of Interest
      1. The Rating Team or any of their family members have no interest in this rating (Chapter III; 12-2-(j))
      2. PACRA, the analysts involved in the rating process, and members of its rating committee and their family members do not have any conflict of interest relating to the rating done by them (Chapter III; 12-2-(e) & (k))
      3. The analyst is not a substantial shareholder of the customer being rated by PACRA [Annexure F; d-(ii)]
      4. Explanation: for the purpose of the above clause, the term "family members" shall include only those family members who are dependent on the analyst and members of the rating committee.
  2. Restrictions
    1. No director, officer, or employee of PACRA communicates the information acquired by him for use for rating purposes to any other person, except where required under law to do so. (Chapter III; 10-(5))
    2. PACRA does not disclose or discuss with outside parties or make improper use of the non-public information which has come to its knowledge during a business relationship with the customer. (Chapter III; 10-7-(d))
    3. PACRA does not make proposals or recommendations regarding the activities of rated entities that could impact a credit rating of the entity subject to rating. (Chapter III; 10-7-(k))
  3. Conduct of Business
    1. PACRA fulfills its obligations in a fair, efficient, transparent, and ethical manner and renders high standards of services in performing its functions and obligations. (Chapter III; 11-A-(a))
    2. PACRA uses due care in the preparation of this Rating Report. Our information has been obtained from sources we consider to be reliable, but its accuracy or completeness is not guaranteed. PACRA does not, in every instance, independently verify or validate information received in the rating process or in preparing this Rating Report. (Clause 11-(A)(p))
    3. PACRA prohibits its employees and analysts from soliciting money, gifts, or favors from anyone with whom PACRA conducts business. (Chapter III; 11-A-(q))
    4. PACRA ensures before the commencement of the rating process that an analyst or employee has not had a recent employment or other significant business or personal relationship with the rated entity that may cause or may be perceived as causing a conflict of interest. (Chapter III; 11-A-(r))
    5. PACRA maintains the principle of integrity in seeking rating business. (Chapter III; 11-A-(u))
    6. PACRA promptly investigates in the event of misconduct or a breach of the policies, procedures, and controls, and takes appropriate steps to rectify any weaknesses to prevent any recurrence, along with suitable punitive action against the responsible employee(s). (Chapter III; 11-B-(m))
  4. Independence & Conflict of Interest
    1. PACRA receives compensation from the entity being rated or any third party for the rating services it offers. The receipt of this compensation has no influence on PACRA’s opinions or other analytical processes. In all instances, PACRA is committed to preserving the objectivity, integrity, and independence of its ratings. Our relationship is governed by two distinct mandates: i) rating mandate - signed with the entity being rated or issuer of the debt instrument, and ii) fee mandate - signed with the payer, which can be different from the entity.
    2. PACRA does not provide consultancy/advisory services or other services to any of its customers or their associated companies and associated undertakings that are being rated or have been rated by it during the preceding three years, unless it has an adequate mechanism in place ensuring that the provision of such services does not lead to a conflict of interest situation with its rating activities. (Chapter III; 12-2-(d))
    3. PACRA discloses that no shareholder directly or indirectly holding 10% or more of the share capital of PACRA also holds directly or indirectly 10% or more of the share capital of the entity which is subject to rating or the entity which issued the instrument subject to rating by PACRA. (Chapter III; 12-2-(f))
    4. PACRA ensures that the rating assigned to an entity or instrument is not affected by the existence of a business relationship between PACRA and the entity or any other party, or the non-existence of such a relationship. (Chapter III; 12-2-(i))
    5. PACRA ensures that the analysts or any of their family members shall not buy, sell, or engage in any transaction in any security which falls in the analyst’s area of primary analytical responsibility. This clause, however, does not apply to investments in securities through collective investment schemes. (Chapter III; 12-2-(l))
    6. PACRA has established policies and procedures governing investments and trading in securities by its employees and for monitoring the same to prevent insider trading, market manipulation, or any other market abuse. (Chapter III; 11-B-(g))
  5. Monitoring and Review
    1. PACRA monitors all the outstanding ratings continuously, and any potential change therein due to any event associated with the issuer, the security arrangement, the industry, etc., is disseminated to the market immediately and in an effective manner after appropriate consultation with the entity/issuer. (Chapter III; 17-(a))
    2. PACRA reviews all the outstanding ratings periodically on an annual basis. Provided that public dissemination of annual review and in an instance of change in rating will be made. (Chapter III; 17-(b))
    3. PACRA initiates an immediate review of the outstanding rating upon becoming aware of any information that may reasonably be expected to result in downgrading of the rating. (Chapter III; 17-(c))
    4. PACRA engages with the issuer and the debt securities trustee to remain updated on all information pertaining to the rating of the entity/instrument. (Chapter III; 17-(d))
  6. Probability of Default
    1. PACRA’s Rating Scale reflects the expectation of credit risk. The highest rating has the lowest relative likelihood of default (i.e., probability). PACRA’s transition studies capture the historical performance behavior of a specific rating notch. Transition behavior of the assigned rating can be obtained from PACRA’s Transition Study available at our website. (www.pacra.com) However, the actual transition of rating may not follow the pattern observed in the past. (Chapter III; 14-3(f)(vii))
  7. Proprietary Information
    1. All information contained herein is considered proprietary by PACRA. Hence, none of the information in this document can be copied or otherwise reproduced, stored, or disseminated in whole or in part in any form or by any means whatsoever by any person without PACRA’s prior written consent.

Sep-25

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