Rating Details	Rating Type	BFR
	Dissemination Date	Current (09-May-25 )	Previous (10-May-24)
	Action	Maintain	Maintain
	Rating	BFR 2	BFR 2
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	KTrade is majority-owned (~60%) by Oxford Frontier Capital. The remaining shares are held by Ms. Mubashira Bukhari Khwaja (~20%), CEO Mr. Mahmood Ali Shah Bukhari (~15%), and the rest by minor shareho
	Governance	The Board of KTrade comprises five members, including the CEO, with key representation from major shareholders, ensuring strong governance alignment. It is composed of seasoned professionals.
	Management and Client Services	KTrade operates with a lean structure and experienced leadership, managing six branches. The company ensures efficient operations through full system integration and strong client servicing.
	Internal Controls and Regulatory Compilance	KTrade has four board-level committees: Audit, Risk Management, HR and Remuneration, and Nomination Committee. These committees ensure regulatory adherence, supported by outsourced internal audit for
	Business Sustainability	KTrade topline is primarily driven by equity brokerage. During 1HFY25, the Company earned ~PKR 269 mln in brokerage revenue (SPLY: ~PKR 92 mln) and reported a net profit of ~PKR 170 mln (SPLY: ~PKR 57
	Financial Sustainability	As of 1HFY25, KTrade holds a PKR 597 mln equity base (SPLY: PKR 448 mln), fully backed by capital injection, indicating improved capitalization and financial stability.

Key Rating Drivers

Ktrade’s BFR rating reflects its entrenched market position and durable competitive advantages, which underpin resilient cash flow generation. Amid challenging macroeconomic conditions, the company has maintained financial stability through prudent cash flow discipline and cost containment. Its seasoned management team and good governance architecture serve as a cornerstone for operational resilience and strategic execution. However, execution risk remains elevated as Ktrade advances its growth agenda, particularly in diversifying product lines and expanding into new markets. Sustained regulatory compliance and proactive engagement with oversight bodies remain pivotal to its credit profile. Moving forward, the materialization of planned revenue and geographical diversification is important for the rating. Maintenance and improvement of market share and growth in revenue and profitability remain vital. Meanwhile, it is imperative to uphold strong internal controls, retention of key management personnel and diligently monitor risks.

About the Entity
	Legal Structure	Public Limited
	Year of Establishment	25-Apr-13
	Type of License	Trading and Self-clearing
	Majority Ownership	Oxford Frontier Capital Limited | ~60%

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Usama Ali usama.ali@pacra.com +92-42-35869504 www.pacra.com	Assessment Framework | Broker Fiduciary Rating | Jan-25	Sector Study | Brokerage Firms | Feb-25

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