Jahangir Siddiqui & Co. Ltd.

CREDIT RATING REPORT | Jul-25

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Rating History
Dissemination Date Long-Term Rating Short-Term Rating Outlook Action Rating Watch
25-Jul-25 AA A1+ Stable Maintain -
26-Jul-24 AA A1+ Stable Maintain -
27-Jul-23 AA A1+ Stable Maintain -
29-Jul-22 AA A1+ Stable Maintain -
30-Jul-21 AA A1+ Stable Maintain -
About the Entity

Jahangir Siddiqui & Co. Ltd. ('JSCL' or 'the Company'), a successor to the brokerage business started in the early seventies by Mr. Jahangir Siddiqui, was established in 1991 and is listed on the Pakistan Stock Exchange (PSX). JSCL, JS Group’s flagship holding company, has a portfolio of investments categorized into a) core investments (subsidiaries), b) strategic investments and c) trading investments. Investments in the financial segment dominate the portfolio with a significant concentration in the banking and insurance sectors. Other investments are in the energy, petroleum, and infrastructure sectors. Justice (R) Agha Rafiq Ahmed Khan is Chairman of the BoD, while, Mr. Asad Nasir heads the Company as CEO.

Rating Rationale

The ratings of Jahangir Siddiqui & Co. Ltd. (JSCL or “the Company”) reflect its prominent standing as a well-diversified investment holding company with a strong presence in Pakistan’s financial services sector. JSCL serves as the flagship holding company of the JS Group, overseeing a diversified investment structure through both direct and indirect ownership. JSCL maintains a well-diversified and strategically structured investment portfolio, encompassing significant positions across the financial services spectrum—including Conventional and Islamic Banking, Asset Management, Securities Brokerage, Investment Banking and Insurance. In addition, the Company retains full ownership of subsidiaries operating in petroleum, infrastructure development, and telecommunications sector. This extensive sectoral exposure underpins JSCL’s long-term growth trajectory and reinforces its risk-mitigation framework. JSCL maintains 100% ownership of Energy Infrastructure Holding (Private) Limited (EIHPL), JS Infocom Limited. This integrated and multi-tiered corporate structure reflects JSCL’s strategic focus on sectoral diversification and operational synergy across both domestic and international fronts.
JSCL benefits from its long-term investment and capital allocation strategy, enabling it to navigate macroeconomic challenges while generating sustainable value for its shareholders. The consolidated asset base of PKR 1.378 trillion enhances the Company's financial strength, investment capacity, and credibility, enabling it to absorb risks and pursue strategic growth. Dividend income from strategic and short-term investments remains a vital revenue stream, with additional support from interest income. As of Dec24, the Company reported total investment income of PKR 1,090mln, of which a substantial 87% (PKR 955 mln) was derived from dividend income, reflecting a strong reliance on stable equity returns. A strong equity base of PKR 31bln and no exposure to borrowings, is reflecting its strong financial management. JSCL continues to uphold best practices in corporate governance and risk management, supported by an experienced board, dedicated committees, and independent oversight. It also actively pursues Environmental, Social, and Governance goals, including initiatives promoting diversity, financial inclusion, and community impact. Supported by its group entities and a disciplined capital structure, JSCL is well-positioned to capitalize on strategic growth opportunities and reinforce its position as a leading investment holding company in Pakistan.

Key Rating Drivers

The ratings are dependent on the management's ability to execute its envisaged strategy of growth and expansion amidst the prevailing tough environment. Timely materialization of these initiatives into sustainable ventures is critical. Strong performance of subsidiaries, stable dividends, and effective management of financial profile and liquidity remains important.

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

Jahangir Siddiqui & Co. Ltd.

rating analysis

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Profile
Background

Jahangir Siddiqui and Co. Ltd. (JSCL), successor to brokerage business started in early seventies by Mr. Jahangir Siddiqui, was established in 1991. Starting as a traditional securities firm, JSCL is now the main investment arm for Mr. Jahangir Siddiqui’s (JS) business interests.


Structural Analysis

JSCL’s structure encompasses holding investments of JS Group in various sectors of the economy.  JSCL’s portfolio of investments is categorized into a) Core Investments (56%), b) Strategic Investment (33%) and c) Trading Investments (10%). Investments in the financial segment dominate the portfolio – significant concentration in banking (40%) and insurance (27%) sectors. JSCL maintains 100% ownership of Energy Infrastructure Holding (Private) Limited (EIHPL), JS Infocom. This integrated and multi-tiered corporate structure reflects JSCL’s strategic focus on sectoral diversification and operational synergy across both domestic and international fronts.


Ownership
Ownership Structure

JSCL’s ownership comprises corporate as well as individual shareholding. The former includes Related Parties, Banks, DFIs, NBFCs, Insurance companies, and mutual funds. Whereas the latter comprises sponsoring individuals, Directors, and the general public. Through personal shareholding of Mr. Jahangir Siddiqui and group companies, JS holds a majority stake in the Company.


Stability

Ownership is seen as stable as major stake rests with JS and the holding company structure is in place.


Business Acumen

JS Group is a well-renowned business group of Pakistan. The group has varied interests in the financial sector, including asset management, financial advisory, brokerage, insurance and banking. JS Group also has investments in industries namely energy, infrastructure, media services, telecom and technology.


Financial Strength

JSCL’s diversified portfolio has played a key role in strengthening the group’s financial position. The group has maintained profitability in recent years, with elevated earnings primarily driven by the equity market's strong performance over the past two years. As of Dec-24, the Company’s consolidated asset base stands at PKR 1.378 trillion and equity base stands at PKR 58bln.


Governance
Board Structure

JSCL has seven-member Board of Directors (BoD), including the CEO. The Board consists one Executive Director which is the CEO, three non-Executive Directors (including one from the sponsor's family), and three Independent Directors.


Members’ Profile

Justice (R) Agha Rafiq Ahmed Khan is Chairman of the BoD. He has srved as Chief Justice of the Federal Shariat Court of Pakistan and has prudent knowledge of  Sharia laws. Asad Nasir is the present Chief Executive Officer of Jahangir Siddiqui & Co Ltd. (“JSCL”) Asad Nasir overall has more than 20 years of diversified financial services experience including Private Equity, Corporate Finance Advisory, Capital Market Advisory, Transaction Services and Audit. 


Board Effectiveness

JSCL’s Board constitutes three committees for effective monitoring and oversight. The Board met five times during CY24. The Board's subcommittees include Audit Committee, Executive Committee, HR & Remuneration Committee. These committees play a critical role in driving governance, transparency, and operational accountability. The Board’s structured approach enables strategic alignment with long-term corporate objectives while reinforcing risk management and performance oversight.


Transparency

KPMG Taseer Hadi & Co., Chartered Accountants are the external auditors of the Company, and they issued an unqualified audit report for year ended Dec-24.


Management
Organizational Structure

The Company has optimized its organizational structure as per the needs of the business. There are four major departments including a) Investments, b) Finance, c) Human Resources and Administration, and d) Corporate Affairs. All departments report to the CEO.


Management Team

The senior management of JSCL comprises well-qualified and experienced professionals having a relatively long association with the Company. Syed Ali Hasham, the CFO, carries over a decade of experience in Finance, Assurance and in Financial Services, Retail and Aviation sectors. Mr. Muhammad Babar Din serves as the Company Secretary and brings over 17 years of work experience in Financial Institutions with core strengths in financial and managerial reporting.


Management Effectiveness

At management level, an Investment Committee (IC) is in place, comprising CEO, CFO and Manager Investments, and it is convened regularly. A performance evaluation of the investment portfolio is carried out focusing on broad parameters wherein identification and evaluation of key factors affecting each investee company are deliberated.


Control Environment

The Company has outsourced its internal audit function to M/s Grant Thornton Anjum Rahman, Chartered Accountants. They conduct regular review to monitor and implement investment policies in place.


Investment Strategy
Investment Decision-making

The investments oversight framework encompasses the structure whereby board members are represented on the boards of investee companies. Jahangir Siddiqui & Co. Ltd. adopts a long-term, diversified investment strategy focused on financial services, innovation, and sustainable growth. Investments are guided by risk averse capital allocation and value creation across high-potential sectors.


Investment Policy

The Company has a prudent investment strategy as it focuses on investing in the financial services sector mostly. These include, life and general insurance, and investment companies. The Company preserves liquidity through its ample dividend income, short term listed securities, and mutual funds.


Investment Committee Effectiveness

The IC presents an investment dashboard highlighting performance of investee companies on a quarterly basis. The management has planned new initiatives to strengthen the oversight framework going forward.


Business Risk
Diversification

JSCL portfolio of investments is categorized into a) Core Investments (56%), b) Strategic Investment (33%) and c) Trading Investments (10%). JSCL’s investment portfolio can be considered fairly diverse, having significant concentration in banking (~40% of total investments) and insurance (~27%) sectors. Others include Energy (~11%), Telecommunication (~5%), Textile (~3%) and other Listed Equities (~14%). Notably, a significant portion of JSCL investments is focused on the banking and insurance sector, making up ~67% of total investments.


Portfolio Assessment

The Company has a well-balanced portfolio. The Company's core investments are in listed and Un-listed subsidiaries, strategic investment in listed related party and short-term investments in listed scrips. The marketability/liquidity element of the portfolio constitutes majorly of trading investments with market value of PKR 33bln, providing cushion to generate liquidity


Income Assessment

The Company derives approximately 87% of its topline from dividend income, underscoring its strategic reliance on returns from portfolio investments as the primary revenue stream. During CY24, total investment income stood at PKR 1,090 million, supported by consistent dividend from investments. EFU General Insurance Limited and EFU Life Assurance Limited continue to be the principal contributors to the dividend stream, reinforcing their  strategic role in the Company’s earnings profile. 


Financial Risk
Coverages

JSCL’s coverage ratios for CY24 reflect strong funding efficiency and prudent financial management. The entity demonstrates strong funding cost efficiency and liquidity. Enhanced liquidity with equity base of PKR 31 billion further reinforces financial stability.


Capital Structure

JSCL has no outstanding borrowings as of CY24, reflecting a strong equity base of PKR 31 billion (CY23: PKR 29 billion) and a low leveraged capital structure. Overall, the capital structure reflects a balanced approach, with equity-backed investments providing growth potential while leveraging remains minimal, supporting the entity's overall credit role and financial flexibility.


Consolidated Position

The Company derives its financial strength from JS Group and subsidiary companies. JSCL consolidated long-term borrowings stood at PKR 26bln as at CY24 (CY23: PKR 22bln) against consolidated equity base of PKR 58bln (CY23: PKR 48bln). Consolidated Income during CY24 increase and stood at PKR 238bln (CY23: PKR 148bln) and following the same pattern profitability stood at PKR 13bln (CY23: PKR 12bln) of JSCL.
 
 

Jul-25

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Jahangir Siddiqui & Co. Ltd.

financial summary

(PKR mln)

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Mar-25
3M		 Dec-24
12M		 Dec-23
12M		 Dec-22
12M
Management Audited Audited Audited
A. BALANCE SHEET
1. Investments 3,213 2,469 2,118 8,371
2. Related Party Investments 30,461 31,333 29,546 23,573
3. Non-Current Assets 217 221 193 202
4. Current Assets 730 247 666 327
5. Total Assets 34,621 34,270 32,522 32,474
6. Current Liabilities 802 611 541 415
7. Borrowings 1,796 1,786 1,871 2,835
8. Related Party Exposure 0 0 0 0
9. Non-Current Liabilities 330 358 332 376
10. Net Assets 31,692 31,515 29,779 28,847
11. Shareholders' Equity 31,692 31,515 29,779 28,847
B. INCOME STATEMENT
1. Total Investment Income 529 1,085 1,571 1,384
a. Cost of Investments (10) (48) (118) (246)
2. Net Investment Income 519 1,036 1,453 1,138
a. Other Income 0 6 3 2
b. Operating Expenses (134) (414) (358) (305)
4. Profit or (Loss) before Interest and Tax 385 628 1,098 835
a. Taxation (112) (230) (807) (490)
6. Net Income Or (Loss) 273 397 291 345
C. CASH FLOW STATEMENT
a. Total Cash Flow 117 609 598 757
b. Net Cash from Operating Activities before Working Capital Changes 117 609 476 569
c. Changes in Working Capital (57) (350) 1,061 (325)
1. Net Cash provided by Operating Activities 61 259 1,537 244
2. Net Cash (Used in) or Available From Investing Activities (12) (92) (25) (26)
3. Net increase (decrease) in long term borrowings 0 0 0 (1,113)
4. Net Cash (Used in) or Available From Financing Activities (0) (129) (1,564) (1,188)
5. Net Cash generated or (Used) during the period 48 38 (52) (970)
D. RATIO ANALYSIS
1. Performance
a. Asset Concentration (Market Value of Largest Investment / Market Value of Equity Investments) 37.5% 40.0% 42.9% 43.8%
b. Core Investments / Market Value of Equity Investments 54.7% 56.4% 60.6% 33.4%
c. Marketable Investments / Total Investments at Market Value 8.2% 5.6% 5.2% 23.6%
2. Coverages
a. TCF / Finance Cost 66.9 79.7 5.1 3.1
b. TCF / Finance Cost + CMLTB 2.9 4.0 2.4 0.6
c. Loan to Value (Funding / Market Value of Equity Investments ) 5.7% 5.4% 6.1% 9.5%
3. Capital Structure (Total Debt/Total Debt+Equity)
a. Leveraging [Funding / (Funding + Shareholders' Equity] 5.4% 5.4% 5.9% 8.9%
b. (Funding + Off Balance Sheet Exposure) / Shareholders' Equity 5.7% 5.7% 6.3% 9.8%

Jul-25

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Jahangir Siddiqui & Co. Ltd.

rating scale

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Jul-25

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Jahangir Siddiqui & Co. Ltd.

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))
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