The Pakistan Credit Rating Agency Limited
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Afnan Iqbal

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PACRA Maintains Broker Management Rating of Optimus Capital Management (Pvt.) Limited

Rating Type Broker Management
(28-Oct-22 )
(29-Oct-21 )
Action Maintain Upgrade
Long Term BMR2 BMR2
Short Term - -
Outlook Stable Stable
Rating Watch - -

Optimus Capital Management (Pvt.) Limited ("Optimus Capital" or "The Company") mainly provides the services of equity brokerage while having a good presence in off-market transactions. The assigned rating incorporates the Company’s satisfactory internal control and risk management framework. An in-house internal audit department provides strength to the overall control environment. However, the internal control framework could be improved further by separating the compliance and finance departments. The rating also takes note of a sound customer relationship and IT infrastructure. A well-developed research department is in place to provide the clients with the necessary research services. The clients are provided with the portfolio statements on a timely basis. The Company has devised a comprehensive Disaster Recovery plan and a well-developed transactions execution and monitoring system. The Company has a lean organizational structure with most of the heads reporting to the CEO. The management team comprises seasoned professionals that ensure the sound quality of services. The rating draws strength from the experienced profile of the CEO, Mr. Asif Ali Qureshi, who has been associated with the capital markets for over 25 years. The governance framework may be improved further by increasing board size and having independent representation. The market risk is negligible as the Company does not invest in equity securities; however, the excess liquidity is parked in PIB’s. The topline has improved by ~26% YoY in FY22 despite declining market volumes, the necessary support was provided by a good share of the off-market transactions. Going forward, the Company is intensively focusing on strengthening its position through penetration in the retail segment for which the advancement of technological platforms is in process.
Going forward, sustainability and improvement in core revenue and profitability remains critical. Meanwhile, upholding strong internal controls, retention of key management and diligent monitoring of risk are important.

About the Entity
Optimus Capital Management (Pvt.) Limited holds the Trading Rights Entitlement Certificate from the Pakistan Stock Exchange and 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 ~20 years of the financial market related experience. The board is comprised of two executive directors including the CEO Mr. Asif Ali Qureshi and the Managing Director Mr. Muhammad Mohsin Ahsan.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.