Rating Details	Rating Type	BFR
	Dissemination Date	Current (07-Mar-25 )	Previous (08-Mar-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 sponsor Mr. Syed Asim Zafar who owns the majority shareholding of ~80%. The remaining ownership vests with Mr. Kamran Ali Farooqi (10%), Ms. Aleezeh Hussain Farooqi (5%) and Ms. Manizeh Hussain Farooqi (5%).
	Governance	The company maintains a sound board structure, consisting of three executive directors and two non-executive directors. The addition of independent representation could be considered to further enhance the governance framework.
	Management and Client Services	The company operates with a streamlined organizational structure, supported by a qualified and experienced management team. Client services are of a high standard, with the availability of online trading and a mobile application. While research services are currently limited, the planned addition of an analyst is expected to enhance their functionality in the future.
	Internal Controls and Regulatory Compilance	The rating reflects an adequate internal control framework, supported by the presence of the Compliance and Internal Audit departments. However, there is a need to expand the depth and scope of both departments. The company has developed all necessary policies to ensure an effective control framework
	Business Sustainability	ZSPL has demonstrated strong performance in 1HFY25 compared to 1HFY24, reporting a net profit of ~PKR 63 million, up from ~PKR 39 million in the same period last year.
	Financial Sustainability	ZSPL engages in proprietary trading, which exposes the company to market risk. It maintains a zero-leverage capital structure and has a sufficient equity base of ~PKR 313 million as of end-December 2024, providing the resilience to withstand market fluctuations.

Key Rating Drivers

Zafar securities (Pvt.) Limited ('ZSPL' or the 'company') has maintained its market position and achieved strong profit margins in 1HFY25 due to effective investment management. To strengthen its position, the Company should diversify its revenue sources, retain key management, enhance client services, and focus on profit sustainability.

About the Entity
	Legal Structure	Private Limited
	Year of Establishment	28-Jun-99
	Type of License	Trading and Self-clearing
	Majority Ownership	Mr. Syed Asim Zafar | ~80%

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 & Securities | Jan-24

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