Rating Details	Rating Type	BFR
	Dissemination Date	Current (13-Jun-25 )	Previous (14-Jun-24)
	Action	Maintain	Maintain
	Rating	BFR 3	BFR 3
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	The rating incorporates the long-standing experience of the primary sponsor Mr. Adam Haji Muhammad who owns the majority shareholding of ~99.6%.
	Governance	The governance framework is anchored in a family-led board structure; however, the absence of independent oversight and committee leadership suggests room for enhanced governance framework.
	Management and Client Services	AHM operates with a compact yet experienced management team, while modest digital access channels support client servicing; the addition of a dedicated research function could further elevate service
	Internal Controls and Regulatory Compilance	AHM's control environment is proportionate to its operational scale; however, a clearer demarcation between compliance and secretarial functions may strengthen overall governance.
	Business Sustainability	AHM's performance trajectory has improved on the back of favorable market dynamics, with stable profitability, supported by equity momentum and ancillary gains; however, revenue concentration and cycl
	Financial Sustainability	AHM's financial footing reflects measured resilience, anchored by prudent credit practices, moderate yet discretion-led market exposure, a balanced but tight liquidity position, and an improved capita

Key Rating Drivers

AHM Securities (Pvt.) Limited (“AHM” or “the Company”) operates with a concentrated business model, anchored in equity brokerage. Amid a recovering macroeconomic backdrop, the equity markets have regained momentum. These supportive macro factors have catalyzed a resurgence in investor participation, with the KSE-100 Index scaling unprecedented highs since, and sustaining elevated levels through 9MFY25. AHM capitalized on this trend, generating realized/unrealized gains of ~PKR 30mln on its proprietary book, alongside improved brokerage commission, both contributing to stable bottom-line performance. On the balance sheet front, capitalization has strengthened materially through internal accruals, with the equity base expanding to ~PKR 229mln and LCB reaching ~PKR 103mln by 9MFY25. Nonetheless, the business model continues to rely heavily on sponsor-driven governance, and income diversification remains limited, with equity brokerage as the principal revenue stream. Going forward, institutionalization of governance frameworks, formalization of proprietary risk oversight, and greater operational depth remain critical to sustain the rating.

About the Entity
	Legal Structure	Private Limited
	Year of Establishment	06-Jan-05
	Type of License	Trading and Self-clearing
	Majority Ownership	Mr. Adam Haji Muhammad (~99%)

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Madiha Sohail madiha.sohail@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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