PACRA Maintains Entity Ratings of Dawood Hercules Corporation Limited

Over the years, Dawood Hercules Corporation Limited's ("DH Corp" or "the Company") has shown very strong profile as an investment company. The Company holds a diversified investment book mainly through Engro Corporation Limited ('Engro Corp'). DH Corp has a structured oversight process in place for monitoring and making new investments, an important requisite for any investment holding company. The Company has invested in blue chip market securities to mitigate investment related risks. DH Corp is exploring new investment avenues to add to its portfolio. During CY22, the Company through a share swap agreement with Avanceon Ltd., a technology based business, has sold its entire stake in its wholly owned subsidiary, Empiric AI (Pvt.) Ltd., for 5.68% shares in Octopus Digital Ltd., a subsidiary of Avanceon Ltd. Octopus provides operational and maintenance support services to businesses for digitalizing their manufacturing, supply chain and financial workflows. DH Corp continues to receive consistent dividend income from Engro Corp, as the subsidiary's underlying businesses have witnessed substantial growth in many of its business verticals. The Company boasts a very strong financial risk profile owing to strong coverages and significant liquidity showing a robust position. The Company holds short term debt on its balance sheet to fund its equity portfolio. However, leveraging remains strong. Moreover, very strong business acumen of the sponsoring family and strong governance practices provide support to the ratings. The ratings depend on the management's ability to sustain low risk profile and follow prudent investment policy. At the same time, maintaining a strong financial profile and liquidity remains important. Any significant increase in debt and/or prolonged downturn in invested companies will impact the ratings.
The ratings depend on the management's ability to sustain low risk profile and follow prudent investment policy. At the same time, maintaining a strong financial profile and liquidity remains important. Any significant increase in debt and/or prolonged downturn in invested companies will impact the ratings.

About the Entity
Dawood Hercules Corporation Limited ("DH Corp" or "the Company") is a public listed company incorporated in 1968. The Company's principal activity is to manage investments including its subsidiary and associated companies. Dawood Group (Dawood Family and Associates) holds ~32.66% stake in DH Corp through its’ corporate entities (~30%) and individuals (~2.66%). Around ~54% is held by foreign companies and the remaining shares are held by financial institutions, general public, and others. The Company's BoD is chaired by Mr. Hussain Dawood, the patriarch of Dawood family. Mr. Mohammad Shamoon serves as the Company's CEO; assisted by experienced professionals.