PACRA Maintains Entity Ratings of Mumtaz Feeds & Allied Industries (Pvt.) Limited

The ratings reflect the growing business profile of Mumtaz Feeds & Allied Industries (Pvt.) Limited (“Mumtaz Feeds” or “the Company”) within the poultry feed sector. The Company is part of the Mumtaz Group, with established presence across the agro-based value chain. Group operations span solvent extraction through Mumtaz Agro Industries and broiler farming through Mumtaz Chick and Mumtaz Protein Farms, which operate Poultry Farms across Southern Punjab. The Group’s forward-looking strategy underscores its ambition to strengthen its integrated business model and capture a larger market share. Expansion initiatives include entry into the consumer goods segment through the planned launch of Mumtaz Soap and diversification into the edible oil and ghee industry under the banner of Mumtaz Oil & Ghee Industries. These ventures are expected to enhance the Group’s revenue diversification, operational synergies, and long-term sustainability. The Company also benefits from the strategic leadership of its sponsors, whose extensive experience and successful business track record contribute to operational resilience and growth. A robust corporate governance framework, reinforced by stringent internal controls and a seasoned management team, underpins the Company’s operations. The sponsors’ strategic vision is evident in the development of a performance-driven corporate culture, enabling the Company to navigate the inherent challenges of the poultry sector effectively.
In FY25, the Company reported revenues of ~PKR 5.8bln, reflecting a decline primarily due to reduced selling prices, imposition of taxes by FBR on unregistered persons, and lower volumetric sales of poultry feed caused by excess supply in the domestic market. Revenue concentration remains notable, with ~50% of sales directed towards associated concerns, Mumtaaz Chicks and Mumtaaz Proteins, while Broiler Control Finisher continues to be the flagship product. The Company remains exposed to inherent feed industry risks emanating from raw material price volatility; however, working capital is effectively managed through extended supplier credit and prudent debtor management. Synergies are also realized by sourcing key inputs, particularly soybean meal, from an associated concern, which further strengthens cost efficiency. The Company maintains a low-leverage capital structure, evidenced by a gearing ratio of ~8.0% in FY25. This is primarily attributable to the management of working capital through internally generated cash flows, reflecting limited reliance on bank financing and aligning with management’s strategic objective of preserving a low-debt profile. The management’s deep understanding of supply chain dynamics underpins efficient procurement practices, enabling consistent production of high-quality feed while keeping costs under control. Mumtaz Feeds should continue diversifying its customer base beyond associated concerns to reduce concentration risk, while sustaining its low-leverage strategy to preserve financial flexibility and resilience against industry volatility.
The ratings remain dependent on management's ability to capture additional market share, improve margins, and drive profitability. Maintaining strict discipline in working capital management and moderate leveraging is crucial. Any significant deterioration in margins or coverage metrics could negatively impact the ratings.

About the Entity
Mumtaz Feeds & Allied Industries (Pvt.) Limited was incorporated as a Private Limited Company in 2016, with commercial operations commencing in 2017. The Company primarily engages in the production and sale of broiler and layer feed in various formulations. The installed annual production capacity stands at 144,000 MT (40 MT per hour). Major shareholding in Mumtaz Feeds resides with Mr. Aamir Ali Khan (~35%), followed by Mr. Muhammad Umer (~20%). Mr. Nasir Malik and his brother Mr. Yasir Malik each hold a 17.5% stake. Mr. Aamir Ali Khan, the CEO and Chairman of the Board, brings over two decades of industry experience, which continues to play a pivotal role in the Company's operational success.