PACRA Maintains Entity Ratings of JS Global Capital Limited
The ratings take into account JS Global Capital Limited’s (“JSGCL” or “The Company”) established position as the top-tier brokerage house of the industry. The ratings incorporate the stable and sizeable market share, established brand name and a sound operating platform. The ratings also incorporate the strong sponsor profile, zero leveraged capital structure, well managed liquidity indicators and improvement in efficiency ratios. Following the recent boom in traded volumes of stock exchange, the core revenue of the Company remained buyout and the Company maintained its market share. The Company’s investment portfolio is compliant to its investment policy and is dominated by bank placements and equity spread transactions which provide stable stream of income. The rating takes into account the Company's strong financial profile with the Net Capital Balance of ~PKR 934mln and an equity base of ~PKR 2.4bln as at Sep-20. Whereas, the topline of the Company depicts diversified revenue stream supplemented by consultancy income, RBFS trade, margin financing and investment return on financial assets. The Company remained profitable during 3QCY20 and generated ~PKR 136mln (SPLY: ~PKR 6mln).
The ratings are dependent on the management’s ability to strengthen revenue base by augmenting consultancy and advisory services. Retaining market share and sustaining profitability from core operations remain critical. Meanwhile, upholding strong internal controls and diligent monitoring of risks is important
JS Global, with commercial operations starting in May 2003, carries the legacy of stock brokerage business initiated in the early seventies by Mr. Jahangir Siddiqui. With its head office based in Karachi, the company operates with eight branches across the country. Its main activities include brokerage, corporate finance, financial advisory, forex, and money market activities. The company is listed on the Pakistan Stock Exchange (PSX). JS Bank Limited (JSBL) is the major shareholder of the company holding ~84% stake in JS Global Capital Ltd. Along with brokerage services, JS Global provides financial advisory services as well. The board of directors (BoD) of JS Global comprises eight experienced professionals, including the CEO.