PACRA Maintains Entity Ratings of Jahangir Siddiqui & Co. Limited

The ratings reflect Jahangir Siddiqui & Co. Ltd's ('JSCL' or 'the Company') strong presence as a Holding Company in the financial sector with a portfolio of investments mainly in banking (JS Bank Limited, BankIslami Pakistan Limited), insurance (EFU Life Assurance and EFU General Insurance), brokerage (JS Global Capital) and asset management segments (JS Investments). In August 2023, JSCL entered into a share swap arrangement with a ratio of 1.318 between JSBL and BIPL. As part of this arrangement, JSCL transferred 235,684,306 shares of BIPL to JSBL. JSBL acquired an additional 67.33% stake in BIPL, raising its total shareholding to 75.12% in BIPL. This acquisition effectively made BIPL a subsidiary of JSBL and an integral part of JSCL. JSCL holds a significant stake in EFU General Insurance and EFU Life insurance and plans to maintain them. JSCL is on its way to diversifying its investment portfolio. It has already made investments in LPG storage, infrastructure and insurance sector through its wholly-owned subsidiary, Energy Infrastructure Holding (Pvt.) Ltd. (EIHPL). The Company's short-term investments comprise investments in the technology, fertilizer, and banking sectors. The Company income stream remained stable, with a major portion comprising of dividend income received from EFUG and EFUL, During CY23, the dividend income has increased by 23% compared to CY22. This along with other income and investment in other instruments of capital market, money market and mutual funds supplements the revenue stream. The Company has a very strong capital structure with low leveraging of ~5.9% at CY23 (CY22: ~8.9%), with adequate coverages. The Company has demonstrated resilience and improved its portfolio in alignment with the current positive market outlook.
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.

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.