PACRA maintains Broker Management Rating of Abbasi and Company (Pvt.) Limited

Abbasi and Company (Pvt.) Limited ("ACPL" or "the Company"), a prominent player in Pakistan’s brokerage sector, continues to reinforce its market standing through diversified revenue streams, strategic digital transformation, and prudent financial management. The Company’s robust performance is underpinned by its multi-faceted income sources, including brokerage commissions from the Pakistan Stock Exchange (PSX) and Pakistan Mercantile Exchange (PMEX), margin trading services (MTS/MFS), returns on short- and long-term investments, profit-bearing bank deposits, and a tiered advisory services model. Furthermore, ACPL is advancing its growth strategy by pursuing a Separately Managed Account (SMA) license, which is anticipated to unlock new opportunities in managed investment solutions and enhance revenue diversification. ACPL benefits from a stable ownership structure, with well-defined succession planning in place. The Board currently comprises three executive directors, all of whom are members of the founding family. While the existing leadership has demonstrated effective operational oversight, the governance framework could be further strengthened through board expansion and the inclusion of independent directors to augment transparency and strategic oversight. In line with industry trends, ACPL has undertaken significant digital upgrades, including the launch of its enhanced trading platform, 'Trade In', which offers a seamless and intuitive user experience for online trading. Complementing this initiative, the Company maintains a dedicated research division and a responsive customer support team, ensuring high service standards and timely resolution of client inquiries. The Company upholds a rigorous internal control environment, governed by well-defined policies and supported by an outsourced internal audit function. The presence of specialized departments for risk management, compliance, and disciplinary oversight further reinforces ACPL’s commitment to operational excellence and regulatory adherence. The brokerage sector has experienced a notable resurgence since October 2023, driven by heightened investor participation, attractive equity valuations, and record trading volumes that propelled the KSE-100 Index to unprecedented levels. This upward trajectory is expected to continue into FY25, albeit with sensitivity to macroeconomic and political developments. For the nine-month period ending March 2025 (9MFY25), ACPL achieved operating revenue of PKR 71 million, reflecting a substantial 42% year-on-year (YoY) growth compared to PKR 50 million in the corresponding period of the prior year (9MFY24). However, administrative expenses increased to PKR 79 million (up 20% YoY from PKR 66 million), resulting in an operating loss for the period. Despite this, the Company reported a net profit of PKR 9 million (9MFY24: PKR 0.4 million), indicative of improved non-operating income streams and potential cost optimizations in other areas. ACPL maintains a conservative capital structure, entirely free of debt, with an equity base of PKR 351 million as of March 2025 (June 2024: PKR 347 million). This financial prudence positions the Company favorably to navigate market volatility while supporting future growth initiatives.
Going forward, rating maintenance requires: revenue diversification to mitigate concentration risk, client base expansion for stability, and geographic growth, all supported by rigorous controls and sustained profitability.

About the Entity
Abbasi and Company (Pvt.) Limited (ACPL) is a SECP-registered, TRE-certified broker and corporate member of the Pakistan Stock Exchange (PSX), operating since 1999. The company holds Universal Membership of the Pakistan Mercantile Exchange (PMEX) and offers equity/commodity brokerage along with SECP-approved investment research services to retail, institutional, and individual clients. ACPL maintains strong family stewardship, with 90.85% ownership concentrated among the Abbasi family - led by Mr. Syed Muhammad Ismail Abbasi (52.59% controlling stake), Syed M. Umar Abbasi (25.31%), Ms. Yasmeen Ismail (12.90%), and Syed Awais Ali Abbasi (0.05%).