PACRA Assigns Initial Entity Ratings to Hoora Pharma (Pvt.) Limited

Hoora Pharma (Pvt.) Limited, incorporated in 2010, is a private limited company engaged in the supply, installation, and servicing of diagnostic and medical equipment across Pakistan. Its product portfolio includes testing systems for blood, HIV, and hepatitis, along with imaging equipment such as ultrasound, CT scan, and MRI machines. The Company operates as part of the Hoora Group, which also includes Hoora Pharma (AOP) and Pinnacle Biotech (Pvt.) Limited. Pinnacle Biotech is involved in the manufacturing and marketing of branded generics across various therapeutic categories, including cardiovascular, diabetes, and antibiotics. Hoora Pharma (Pvt.) Limited holds distribution arrangements with globally renowned medical & diagnostic equipment manufacturers, such as Siemens Healthineers, GE Healthcare, Shimadzu, and Terumo. It follows a hybrid business model, which includes direct equipment sales, long-term rental agreements, and service-based contracts with prominent public and private hospitals, as well as diagnostic laboratories. The demand for diagnostic equipment and services has gradually increased, supported by factors such as urban population growth, higher health awareness influenced by digital and social media, and ongoing development in healthcare infrastructure. However, the industry remains exposed to challenges such as exchange rate volatility, a stringent regulatory environment, and significant working capital requirements. Currently, the gradual transition of business from Hoora Pharma (AOP) to Hoora Pharma (Pvt.) Limited is underway and expected to be completed by FY26. During FY24, the revenue of the Company was recorded at ~PKR 3.9bln (FY23: ~PKR 2.1bln). Gross profit margin showed some dilution and stood at ~23.4% (FY23: ~25%), mainly due to an increase in equipment-associated costs. However, net margin improved to ~10% (FY23: ~7%) due to an increase in other income. The board’s composition primarily consists of close family members, thus limiting the presence of independent oversight, and the external auditors are just QCR-rated, suggesting scope for strengthening the corporate governance framework. The operations of the Company are managed by an experienced and qualified management team, and adequate internal control systems are implemented across the organization. Recently, the Company has been qualified as an authorized distributor of Johnson & Johnson’s wound closure product portfolio and projects an additional sizeable revenue stream. The financial risk profile of the Company is considered adequate, with comfortable coverages and cashflows. However, working capital cycle is stretched due to the nature of the business. Capital structure is leveraged, where borrowings are mainly comprised of short-term for working capital requirements, and a modest equity base.
The ratings are dependent upon the Company’s ability to sustain revenue growth while improving cost efficiencies and enhancing profit margins. Additionally, adherence to the debt and profitability benchmarks outlined in the provided financial projections remains essential. Furthermore, the successful and complete transfer of assets, equity, and liabilities from Hoora Pharma (AOP) to Hoora Pharma (Pvt.) Limited will remain important.

About the Entity
Hoora Pharma (Pvt.) Limited, established in 2010, operates in the healthcare sector, specializing in the distribution of advanced diagnostic and medical equipment. The Board comprises three members, led by CEO Mr. Abdul Rasheed Chohan (55% ownership), a seasoned industry professional. He is supported by his sons, Mr. Zulqarnain Rasheed Chohan (45% ownership) and Mr. Saad Rasheed Chohan (Director Sales & Marketing), both of whom play active roles in driving the Company’s strategic and operational direction.